ECO201_terms3.docx - ECO201Module 3 Terminology Directions...

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ECO201—Module 3 Terminology Directions : Define each of the terms below and evaluate the significance of each term to the topics presented within the textbook. Chapter 8 Term Definition Significance National income accounting accounting is a measurement system used to estimate national income and its components . Total income the yearly amount earned by the  nation's resources (factors of  production).  Total income therefore includes wages,  rent, interest payments, and profits that  are received by workers, landowners,  capital owners, and entrepreneurs,  respectively. Total income represents the income  received by households in payment for  the production of goods and services Final goods and services goods and services that are at their  final stage of production and will not  be transformed into yet other goods  or services . For example, wheat ordinarily is not  considered a final good because it is  usually used to make a final good,  bread.

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