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National-income accounting is the measurement of aggregate economic activity, particularly national income and its components. The measurement of aggregate economic activity by national-income accounting serves two basic functions. First, it enables us to identify economic problems. The second function of national-income accounting is to provide an objective basis for evaluating policy.

National-income accounts help us not only to measure the economy but also to understand how it functions.

Gross national product (GNP) is the total market value of all final goods and services produced in a given time period.

GNP per capital is total population: average GNP. GNP per capital relates the total value of annual output to the number of people who share that output; it refers to the average GNP per person.

Even when we focus on domestic market activity we encounter problems in calculating GNP. A very basic problem arises from the fact the production of output typically involves a series of distinct stages. Consider the production of bread, for example. For bread to reach the supermarket, the farmer must grow some wheat, the miller must make bread with it.

We must focus on the value of final goods and services and exclude intermediate goods from our calculation.

Intermediate goods are goods or services purchased for use as input in the production of final goods and services.

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І. Лексико-граматичний тест:

1. Travellers' checks are useful when one______because they are always accepted.

a) travel c) has travelled

b) is travelling d) was travelled

2. We usually expect that______bring bad news.

a) a telegram c) telegrams

b) telegram d) the telegram

3. Had I run out of gas, I______called the garage.

a) had c) would

b) would have d) should have

4. It is very quiet at school. The lessons______. The pupils______classes.

a) began, have c) have begun, are having

b) begin, are having d) are beginning, have

5. The restaurant is______the post office.

a) besides c) nearly

b) beside d) edge

6. By the time I arrive I'm just too______to work.

a) tiring c) tired

b) tyre d) tyres

7.I am fond______tennis.

a) of playing c) to play

b) playing d) play

8 At first I felt homesick but soon I got used______abroad.

a) living c) live

b) to living d) to live

9. How many countries took_______in the last Olympic Games?

a) away c) part

b) out d) place

10.I wish I______speak German.

a) can c) could have

b) could d) will