Question :
24) Personal income defined as
A) national income less retained earnings : 1388075
24) Personal income is defined as
A) national income less retained earnings plus transfer payments and plus interest on government bonds.
B) national income plus retained earnings less transfer payments and less interest on government bonds.
C) national income less depreciation.
D) national income less personal taxes.
25) Disposable personal income is defined as
A) personal income less personal taxes plus indirect sales taxes.
B) personal income less transfer payments plus personal taxes.
C) personal income less personal taxes.
D) personal income less depreciation.
26) National income is derived from gross domestic product by
A) subtracting retained earnings from gross domestic product.
B) adding personal taxes and depreciation to gross domestic product.
C) subtracting depreciation from gross domestic product.
D) adding personal income and transfer payments to gross domestic product.
27) An increase in national income could by caused by which of the following?
A) an increase in depreciation
B) an increase in personal taxes
C) a decrease in personal income
D) an increase in gross domestic product
28) Which of the following would increase disposable personal income?
A) a decrease in transfer payments received
B) a decrease in taxes paid
C) a decrease in personal income
D) All of the above would increase disposable income.
29) Gross domestic product is generally ________ national income.
A) greater than
B) less than
C) equal to
D) unrelated to
Table 19-28
Billions of Dollars
GDP
$3,250
Depreciation
300
Retained earnings
1,000
Personal income
2,500
Transfer payments
50
30) Refer to Table 19-28. Based on the table above, what is national income for this economy?
A) $1,950 billion
B) $2,250 billion
C) $2,950 billion
D) $3,550 billion
Table 19-29
Billions of Dollars
GDP
$5,250
Transfer Payments
50
Retained earnings
700
Depreciation
1,250
31) Refer to Table 19-29. Based on the table above, what is national income for this economy?
A) $4,700 billion
B) $4,000 billion
C) $3,150 billion
D) $2,450 billion
Table 19-30
Billions of Dollars
GDP
$3,250
Depreciation
300
Retained earnings
1,000
Personal tax payments
500
Transfer payments
80
32) Refer to Table 19-30. Based on the table above, what is personal income for this economy?
A) $1,950 billion
B) $2,250 billion
C) $2,450 billion
D) $5,130 billion
33) The total value of production from Ford’s manufacturing plant in Cologne, Germany would be included in Germany’s gross national product.
