Which of the following is the largest component of national income?
A) net interest B) compensation of employees by firms
C) corporate profits D) rental income
B
You might also like to view...
In calculating GDP, economists
A) measure total expenditure as the only true measure. B) can measure either total expenditure or total income. C) measure total income as the only true measure. D) measure total income minus total expenditure. E) measure total income plus total expenditure.
The most fundamental concept in economics is that
a. changes in incentives influence behavior in a predictable way--people will be less likely to choose an option as it becomes more expensive. b. changes in incentives generally do not influence human behavior. c. goods that are provided by government are free for society. d. individuals generally do not consider other alternatives when making a choice.
Lenders sell bonds and borrowers buy them
a. True b. False Indicate whether the statement is true or false
Since actual budget deficits surpassed 10 percent of GDP in 2009:
A. fiscal policy has become contractionary. B. the deficits as a percentage of GDP have fallen, but fiscal policy has remained expansionary. C. deficits as a percentage of GDP have continued to rise. D. deficits as a percentage of GDP have remained constant but risen in dollar amounts.