To reconcile the difference between GDP and national income, the U.S. Department of Commerce (which calculates these things)
a. adds depreciation of capital and indirect business taxes to GDP
b. adds depreciation of capital to and subtracts indirect business taxes from GDP
c. calculates GNP, then subtracts depreciation of capital and nonfactor charges from GNP
d. subtracts depreciation of capital from and adds indirect business taxes to GDP
e. subtracts depreciation of capital and indirect business taxes from national income
C
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How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?
What will be an ideal response?
David is willing to pay $30 for a watch which sells at a market price of $20 . The consumer surplus received by David if he buys the watch is $10
a. True b. False Indicate whether the statement is true or false
Opportunity costs are another name for marginal costs.
Answer the following statement true (T) or false (F)
Which of the following is not true of declining industries?
a. Job loss is not a problem in a declining industry because the workers can easily find jobs in expanding industries. b. Jobs may be lost by declining industries but new jobs are created in expanding industries. c. Over 60 million new jobs have been created in the United States since 1960. d. One way to solve the problems posed by declining industries is for the government to fund programs to retrain workers for jobs that are in greater demand. e. One way to solve the problems posed by declining industries is for the government to offer wage subsidies or special tax breaks that decline over time.