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National Income and Economic Growth
Economic growth refers to sustained increases in national income over time. Growth
can lead to higher employment, improved infrastructure, and better living standards,
making national income a key variable in macroeconomic analysis.
Conclusion
National income explains how production becomes income for workers, landowners,
capital owners, and entrepreneurs. It is essential for understanding growth, distribution,
and policy, and it builds a foundation for later topics such as inflation and
unemployment.
Multiple Choice Questions (MCQs)
1. National income refers to: A. Total income earned by factors of production B. Total
government revenue C. Total exports D. Total population
Answer: A
2. National income is usually measured over:
A. One month B. One year
C. One week D. One day
Answer: B
3. Which is a factor of production?
A. Inflation
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