It is a national income accounting rule that all expenditure on purchases of products in the economy is necessarily equal to:
A) profits of firms.
B) wages of employees.
C) income of the producers of the products in the economy.
D) income of employees.

Question

Quizplus · Accepted Answer

This is known as the principle of income equality, which states that expenditures on goods and services in an economy must necessarily equal the income received by the producers of those goods and services. This includes income earned by employees, as well as profits earned by businesses. Therefore, options A, B, and D are all incorrect.

It Is a National Income Accounting Rule That All Expenditure