Indirect business taxes have to be added to national income to get net domestic product because the
a. price of the good includes these taxes, which are not payments to any factor of production
b. price of the good includes these taxes, which are payments to the government which is a factor of production
c. price of the good excludes these taxes and therefore they have to be added to national income to get net domestic product
d. price includes these taxes, which, although part of national income, are not accounted for
e. national income includes all taxes that a firm pays to the factors of production
A
You might also like to view...
Why would irrigated farming not become more profitable if the federal government lowered the price farmers had to pay for irrigation water?
A) Farmers would have to pay more for electricity to pump the water. B) The cost of owning or renting land that could be irrigated would rise. C) The prices of irrigated crops would not rise. D) Water is a marginal cost in farming. E) Water is a sunk cost in farming.
The structural deficit does not depend on the state of the economy.
Answer the following statement true (T) or false (F)
Which of the following shocks could trigger an expansion?
a. A large cut-back in military spending. b. A large increase in the price of oil. c. A sudden decrease in consumption. d. A large military buildup. e. A sudden decrease in investment.
Which four federal taxes make up the bulk of federal government tax revenues?
a. individual income tax, corporate income tax, property tax, and sales tax. b. corporate income tax, national consumption tax, estate tax, and social security tax. c. individual income tax, social security tax, corporate income tax, and Medicare tax. d. social security tax, Medicare tax, estate tax, and corporate income tax. e. none of the above