Question

National income is a/an ______ concept.

1. stock
2. final
3. intermediate
4. flow

Options

• a and b

• only d

• b and c

• a, b and c

Answer 1

only d

National income is a/an flow concept.

Explanation:

• The total flow of goods and services generated in an economy over the course of a year is measured by national income.
• It is therefore a flow idea rather than a stock concept.
• Additionally, only finished goods and services are included in national revenue; intermediate goods are not (to minimise double counting).