Why are transfer payments included in personal income but not in national income? Are transfer payments included in GDP?

National income is what people earn, while personal income includes income people receive, regardless of
how much they actually earn. Transfer payments represent income received but not earned, and so must be
excluded from national income and included in personal income. Since transfer payments don't represent

Economics

You might also like to view...

In the long run there are ________ price level surprises, meaning that the actual price level ________ the anticipated price level

a. no; exceeds b. many; is below c. many; equals d. no; equals

Economics

Which of the following statements is false?

A) The issuer of a bond is a borrower. B) The person who buys a bond is a lender. C) Interest earned on corporate bonds is exempt from federal income taxes. D) The coupon rate on a bond is the percentage of the face value that the bondholder receives annually until the bond matures.

Economics