How do you calculate personal income from national income?
What will be an ideal response?
First, you start with the national income measure and subtract income that is not distributed to households. The subtraction would include taxes on production and imports, Social Security taxes, corporate income taxes and undistributed corporate profits. Then you add transfer payments, such as Social Security payments, unemployment payments, disability payments, welfare payments or private pension fund payments. These calculations give you personal income.
To calculate disposable income from national income, first follow the calculations that derive personal income. From personal income subtract taxes paid, including personal income taxes, personal property tax and inheritance taxes, and that results in disposable income.
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The product of the stock price and the total outstanding shares of that stock is referred to as:
a. market capitalization. b. floating capital. c. book value. d. financial value. e. face value.
Refer to the above figure. Suppose the original long-run equilibrium was at point B. What could have caused the move to the current equilibrium?
A) Aggregate demand must have decreased. B) Input prices must have increased, causing long-run aggregate supply to increase. C) Decreases in the price level caused short-run aggregate supply to fall. D) A temporary reduction in production due to bad weather.
What happens to the demand for a good if a complement's price increases?
A) The demand increases and the demand curve shifts rightward. B) The demand decreases and the demand curve shifts rightward. C) The demand increases and the demand curve shifts leftward. D) The demand decreases and the demand curve shifts leftward. E) There is no impact on demand for the good and the demand curve does not shift.
Refer to the figure above. If the price of a sweater is $3 and the budget constraint of the consumer is B3, his income is:
A) $45. B) $90. C) $135. D) $270.