239. Explain what net exports mean s.
239 Net exports are a measure of a nation's total trade. The formula for net exports is a simple one: The value of a nation's total export goods and services minus the value of all the goods and services it imports equal its net exports.
A nation that has positive net exports enjoys a trade surplus, while negative net exports mean the nation has a trade deficit. A nation's net exports are thus a component of its overall balance of trade.
240 Explain what national income means
The National Income is the total amount of income accruing to a country from economic activities in a years time. It includes payments made to all resources either in the form of wages, interest, rent, and profits.
National income means the value of goods and services produced by a country during a financial year. Thus, it is the net result of all economic activities of any country during a period of one year and is valued in terms of money. National income is an uncertain term and is often used interchangeably with the national dividend, national output, and national expenditure. We can understand this concept by understanding the national income definition.
241 Explain what government purchases means
Government purchases are expenditures on goods and services by federal, state, and local governments. The combined total of this spending, excluding transfer payments and interest on the debt, is a key factor in determining a nation's gross domestic product (GDP). Transfer payments are expenditures that do not involve purchases, such as Social Security payments and farm subsidies.
242. Explain what consumption means
What is consumption? The term ushta refers to the use of the population’s own data, the transportation of goods (goods). Buying all of the production to buy something long or new. In fact, all consumption is of two types: products and uses.
People consume services and goods to meet their needs or desires. In a sense, it is consumption that is the basis of society. At the same time, the standard of living of the population directly depends on its ability to consume. The need for a particular product or service leads to supply, sometimes entire sectors of the economy are created for the needs of the people. That is, the more goods and services are created, the higher the level of consumption and the standard of living of the population.
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