Why is it important to account for the net foreign factor income when calculating domestic income instead of national income?
What will be an ideal response?
Domestic income calculates the total income earned in the country’s borders. This calculation includes both income earned from American-owned resources and income earned from foreign-owned resources located in the U.S. Net foreign factor income represents the income from foreign-owned resources. Without accounting for it, we would not have a complete picture of the total income earned domestically. National income does not take net foreign factor income into account because it is only concerned with income earned by Americans.
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The unemployment rate is defined as: a. unemployed workers plus discouraged workers, divided by the total population over the age of sixteen. b. part-time workers plus full-time workers, divided by the total population over the age of sixteen
c. the percentage of the labor force that is unemployed. d. the percentage of the population over the age of sixteen that is unemployed.
Jack is selling his sweaters for the market price of $40. His average variable costs are $50. In this situation, Jack should do which of the following?
a. Shut down and only lose his fixed cost. b. Shut down and lose his fixed and variable cost. c. Shut down and only lose his variable cost. d. Keep producing and lose some of his variable cost.