Question

A 3512 Correct Answer Incorrect Answer
B 3515 Correct Answer Incorrect Answer
C 3290 Correct Answer Incorrect Answer
D 3540 Correct Answer Incorrect Answer
E 4000 Correct Answer Incorrect Answer

Solution

NI = GDP + NR - IBT - CC 

NI = National income 

NR = + or - Net income from assets abroad (net income receipts) 

IBT = Indirect business taxes 

CC = Depreciation 

NI = 4000 + 0 - 210 - 500 = 3290 

Personal Income = NI - corporate taxes - retained earnings - social security + transfer payments + net interest 

PI = 3290 - 50 - 25 - 200 + 500 = 3515

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