Identify the relationship between GDP, taxes, and disposable income.
What will be an ideal response?
Disposable income consists partly of income earned by resources used in producing the GDP minus the total taxes levied on productive incomes at the various production stages. Depreciation allowances and corporate retained earnings are also deducted from GDP and transfer payments are added to arrive at the figure for disposable income.
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Real income can be measured by
A) the slope of the budget line. B) the area under the budget line. C) the length of the budget line. D) an intercept of the budget line.
The AK growth model indicates that countries with high saving rates experience ________, and countries with low saving rates experience ________
A) high growth rates; low growth rates B) low growth rates; high growth rates C) positive growth rates; no growth D) negative growth rates; positive growth rates
If companies from foreign countries build and operate factories in China, then China's productivity
a. and the wages of Chinese workers increase. b. increases but the wages of Chinese workers decrease. c. decreases but the wages of Chinese workers increase. d. and the wages of Chinese workers decrease.
Which of the following contributes to the high productivity of American workers?
A. The labor-intensive production process in the United States. B. The decreasing investment in human capital. C. The low level of factor mobility. D. The abundance of capital relative to labor.