Which of the following statements is true?
A. National income is total income earned by households whereas personal income is total income received by households (including transfer payments).
B. Disposable personal income equals personal income plus personal taxes.
C. The expenditures approach yields a higher GDP value than the income approach.
D. The expenditures approach yields a lower GDP value than the income approach.
Answer: A
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Which of the following contributed to the increase in income inequality among families in the United States during the 1980s and 1990s?
a. an increase in the highest marginal tax rates that forced high income earners to work more in order to maintain their income b. an increase in the proportion of both single-parent and dual-earner families c. a decrease in the size of the earnings differential between college graduates and high school graduates d. all of the above
Consider the data in Table 9.6. If each firm is currently generating 100 gallons of wastewater per day, Firm B would be willing to pay up to ________ to Firm A to be able to generate 200 gallons of wastewater per day.
A. $10 B. $12 C. $28 D. $200