Refer to Table 2.7. Use the information in the table to calculate the values for national income, personal income, and disposable personal income
What will be an ideal response?
National income = GDP - consumption of fixed capital = $475,000 - $16,975 = $458,025.
Personal income = (national income - retained earnings + transfer payments + interest on government bonds) = ($458,025 - $21,400 + $1,120 + $205 ) = $437,950.
Disposable personal income = personal income - personal tax payments = $437,950 - $880 = $437,070.
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If the nominal interest rate is ________ and the inflation rate is ________, the real interest rate is positive
A) zero; positive B) negative; zero C) zero; negative D) negative; negative
The demand curve for low-skilled labor lies to the left of the demand curve for high-skilled labor because
A) there are more high-skilled workers than low-skilled workers. B) high-skilled workers require more compensation than low-skilled workers. C) high-skilled workers are more productive than low-skilled labor. D) firms do not see any difference between high-skilled labor and low-skilled labor.
The benefit to the firm from hiring one additional worker is called the
A) marginal revenue product of labor. B) total revenue. C) marginal profit. D) marginal revenue.
Taxes on capital gains and interest decline as inflation rates increase
a. True b. False Indicate whether the statement is true or false