You have data for compensation of employees, proprietors' income, rental income, and net interest. Can you compute national income?
A) Yes, all of the components of national income are given.
B) No, since data on indirect business taxes are missing.
C) No, since data on corporate profits is missing.
D) No, since data on the capital consumption allowance is missing.
E) No, since net interest has not been adjusted for profits.
C
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There are three goods you are interested in purchasing, X, Y, and Z. You notice that the price of Z has fallen. Given that the cross elasticity between Z and Y is –1.5 and the cross price elasticity between Y and X is 3.0, it would make sense that
a. Y and X are substitutes; X and Z are substitutes b. Z and X are complements; Y and X are substitutes c. Y and X are substitutes; Y is complementary to Z d. X and Z are unrelated; Y is complementary to X e. X and Z are complements; Y and Z are substitutes
Why would a firm price discriminate? Because price discrimination allows the firm to
a. increase consumer surplus b. create brand multiplication c. select the best consumers who are willing to pay the highest price d. convert consumer surplus into economic profit e. shift its demand curve to the right