Total income is defined as
A) the total amount earned by all resource owners.
B) the sum of the total receipts of firms and the amount earned by households.
C) the sum of the total receipts of firms less the amount of tax that must be paid.
D) the total receipts of firms before taxes.
A
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Sustained economic growth generally occurs when a nation
A) abandons the market system in favor of central economic planning. B) abandons the rule of law in favor of a series of licenses, regulations, and tariffs to control and protect the domestic economy. C) subsidizes loss-generating enterprises and thereby preserves jobs and incomes. D) creates conditions where people are free to specialize and exchange.
A firm that is technologically efficient
A) must be economically efficient, but a firm that is economically efficient is not always technologically efficient. B) must be economically efficient, and a firm that is economically efficient must always be technologically efficient. C) is not always economically efficient, and a firm that is economically efficient is not always technologically efficient. D) is not always economically efficient, but a firm that is economically efficient must always be technologically efficient.