Total income is defined as
A. the total receipts of firms before taxes.
B. the sum of the total receipts of firms and the amount earned by households.
C. the total amount earned by all resource owners.
D. the sum of the total receipts of firms less the amount of tax that must be paid.
Answer: C
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________ gross domestic product is the value of ________ linked back to the prices of a single year
A) Real; total production B) Real; production possibilities C) Productivity; the consumer price index D) Nominal; total production
Free markets produce relatively high levels of efficiency but low rates of growth.
Answer the following statement true (T) or false (F)
Suppose that the cost of living is 25 percent higher in Chicago than in Indianapolis. If wages in Chicago are 10 percent higher on average than wages in Indianapolis, then eventually the labor supply will
a. fall in Indianapolis, increasing the average wage there b. fall in Chicago, increasing the average wage there c. rise in Indianapolis, increasing the average wage there d. rise in Chicago, decreasing the average wage there e. fall in Indianapolis, decreasing the average wage there
Demand deposits are balances in bank accounts that depositors can access by writing a check or using a debit card
a. True b. False Indicate whether the statement is true or false