The primary purpose of measuring national income is to assess economic growth over time.

The primary purpose of national income accounting is to assess the economic performance of a country.

The primary purpose of supply is to meet consumer demand by providing goods and services.

The purpose of a budget is to track income and expenses to manage financial resources effectively.

Perfect competition is characterized by many buyers and many sellers in the market.

A shortage occurs when the quantity demanded exceeds the quantity supplied at a given price.

The point where the supply and demand curves intersect is called the equilibrium, where quantity supplied equals quantity demanded.

The total value of all final goods and services produced in a country in a given year is known as Gross Domestic Product (GDP).

Monopolistic competition is characterized by many buyers and sellers with differentiated products.

Perfect competition is characterized by a large number of firms competing against each other, leading to the highest level of competition.

National income can be calculated using various methods, including the production method, income method, and expenditure method.

All of the above components—investment, net exports, and consumption—are part of the expenditure approach to calculating GDP.

A change in consumer income can lead to a shift in the demand curve, as higher income typically increases demand for normal goods.

A monopoly is characterized by a single seller in the market with no close substitutes for the product.

In a perfectly competitive market, products are homogeneous, meaning they are identical and interchangeable.

Consumer spending is a component of national income as it reflects the total expenditure on goods and services in the economy.

All of the above—wages, rent, and profits—are components of the income approach to calculating GDP.

The central bank performs multiple functions including issuing currency, regulating banks, and controlling inflation.

A limitation of GDP is that it does not account for income inequality, which can provide a misleading picture of economic well-being.

National income statistics often do not account for income inequality, which can mask disparities in wealth distribution within a country.

All of the above methods—income approach, expenditure approach, and production approach—can be used to calculate national income.

Central banks control inflation primarily by adjusting interest rates to influence economic activity.

Consumer income is a determinant of demand, not supply.

Bureaucracy is not a type of market structure; the other three are recognized market structures.

Used car sales are not included in GDP calculations as they do not represent new production.

Government transfer payments, such as social security or unemployment benefits, are not included in national income as they do not reflect the production of goods and services.