National income accounting reveals that the value of total production in an economy is ________ the value of total income.

Question

Quizplus · Accepted Answer

National income accounting uses the measures of gross domestic product (GDP) and gross national income (GNI) to calculate the total value of production and income in an economy. By definition, GDP is the total value of goods and services produced in an economy, while GNI is the total income earned by all factors of production within a country's borders. Since these two measures are both intended to capture the same overall economic activity, they should be equal in value. Therefore, the answer is (C) equal to.

National Income Accounting Reveals That the Value of Total Production