Question

In: Economics

Personal income is calculated as A. national income minus corporate profits retained by corporations minus taxes...

Personal income is calculated as

A.

national income

minus

corporate profits retained by corporations

minus

taxes on production and imports and social insurance taxes

minus

??

personal interest income received from the government and consumers

minus

all transfer payments.

B.

national income? + corporate profits retained by corporations

minus

taxes on production and imports and social insurance taxes? + personal interest income received from the government and consumers

plus

all transfer payments.

C.

national income? + corporate profits retained by corporations? + taxes on production and imports and social insurance taxes? + personal interest income received from the government and consumers

plus

all transfer payments.

D.

national income

minus

corporate profits retained by

corporationsminus

taxes on production and imports and social insurance taxes? + personal interest income received from the government and consumers

plus

all transfer payments

Solutions

Expert Solution

Answer : D)

Explanation :

Personal income = Private income - Corporation Tax -Undistributed Profits + All Types of transfer payments

or

Personal income = National income - Income from public sector - Corporation Tax -Undistributed Profits + All Types of transfer incomes

Rahul Sunny answered 2 years ago
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