Which of the following form the basis of GDP calculated using the income approach?   Question 4 options:   depreciation, profit, investment, and interest   wages, rent, profit, and interest   wages, depreciation, profit, and consumption   Indirect taxes, consumption, rent, and wages   factor prices, profit, rent, and net capital

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: Given that, Income of Amy = $20,000Income of Betty =  $40,000Income of Charlie =  $60,000Income of…

Q: Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals…

A: Gross domestic product: Gross domestic product or GDP is an standard measure which includes the…

Q: 11- Earnings such as wages, interests and dividends by residents who are living in other countries…

A: Domestic Product and Domestic Output is the output produced in the home country.  Price level is the…

Q: Depreciation 5 Do you think GDP shows everything about the well-being of a count

A: Gross domestic product is the market value of all of the services and the finished goods which are…

Q: The relationship between businesses and households determines how income and output flow through the…

A: "Gross domestic product or GDP indicates the market or monetary value of all the final commodities…

Q: All figures are in billions of dollars: Gross Private Domestic Investment 848.3 Proprietor's Income…

A: GDP = Compensation of employees + mixed income of self employed + operating surplus + depreciation +…

Q: Describe the effect that changes in business taxes, personal income, and transfer payments have on a…

A: GDP measures the money value of all final goods and services produced within an economy in a given…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: New incomes of ammy = 75% or 20,000                                         = 15,000 New incomes of…

Q: Suppose that the components of aggregate cash flows to firms in a country are as follows: Sales…

A: Answers   Given, the components of aggregate cash flows to firms in a country are - Sales revenue =…

Q: Differentiate between the income approach and expenditure approach to the measurement of national…

A: National income is the market value of all final goods and services produced in the economy in a…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: National income implies the worth of labour and products created by a country during a monetary…

Q: Inflation causes a rise in   Question 28 options:   both real GDP and nominal GDP.   real GDP but…

A: Gross Domestic Product is the value of all final goods and services produced in an economy over a…

Q: Proprietors' income includes all of the following except Select one : a. the income of…

A: Sole proprietorship: one can operate this business.

Q: In national income accounting, government purchases include: purchases by the Federal government…

A: Government purchase includes government spending on goods and services, by federal, state and local…

Q: Below is a list of domestic output and national income figures for a given year. All figures are in…

A: 1 GDP=Personal consumption expenditures+(Net private domestic investment+ Depreciation) +Government…

Q: Use the information in the table below to answer Q.3.1 to Q.3.3: GDP at market prices R397bn Net…

A: The GNP at market price(MP) shows us the value(in monetary terms) of all the finished goods &…

Q: Although the gross domestic product (GDP) has historically been the strongest indicator of national…

A: GDP refers to a country's overall financial performance over an arbitrary period of time. While GDP…

Q: Use the information in the table below to answer questions 6 and 7: GDP at market prices R378bn…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: If households pay $1,000 in interest payments and receive $1,200 in interest, wages equal $9,000,…

A: The gross domestic income measures the economic activity of a country by summing up the income…

Q: Which of the following best characterizes the circular flow of income? Businesses buy resources from…

A: The circular flow of income model depicts how income flows through the economy between economic…

Q: Which of the following national income accounting identities are true for a closed economy in the…

A: National income is the total amount of money received by the people and businesses of a country. It…

Q: Disposable income ________ when ________. a. decreases; taxes increase b. decreases; transfer…

A: DISPOSABLE INCOME IS A NET INCOME , IT IS THE AMOUNT LEFT OVER AFTER TAX. IT IS ALSO KNOWNS AS…

Q: QUESTION 2 Refer to the accompanying national income data (in billions of dollars) and answer the…

A: Exports are labor and products that are created locally, however at that point offered to clients…

Q: Consider the following table: Billions of dollars $13,300 1,450 1,250 GDP Depreciation Corporate…

A: Note:- Since we can only answer one question at a time and the exact one is not specified, we'll…

Q: Identify the statement that describes the Gross Domestic Product of a country. a. All goods and…

A: Gross Domestic Product GDP by its name suggests that the output that is domestically produced within…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: GDP computes the monetary value of final goods and services—that is, those that are purchased by the…

Q: of

A: We know that equilibrium requires: Y = AE = C + I + G C = (1 - MPS)(Y - T) and I = (MPS)(Y-T) So, Y…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: GDP measures the total monetary worth of all recently created final products and services generated…

Q: What is the fundamental difference between real and nominal GDP     A.) Both real and nominal GDP…

A: GDP is the value of goods and services produced in the economy.

Q: National Income Data (all figures are in billions of dollars) Business retained earnings 240…

A: A way of measuring the economic welfare of a nation, the GDP is the amalgamation of all the values…

Q: The consumer price index measures ) the cost of all goods and services produced in the U.S. economy.…

A: The consumer price index (CPI) measures the change in prices in a basket of goods and services, such…

Q: The following table shows the national income data for an economy in year 2020. ITEMS RM (Million)…

A: The measure that depicts the final value of goods and services produced in an economy during a given…

Q: In the calculation of national income, all of these items are added, except _____. a. Imputed rent…

A: National income refers to the market value of all the goods and services produced in the country at…

Q: Your supervisor has requested that you calculate the following ratios, rounded to the nearest…

A:

Q: We have the following information for an economy. All data are in billion dollars. Category Value…

A: Answer - "Thank you for submitting the question. But, we are authorized to solve one question at a…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: 1. (a) Income of Amy          = $20,000 Tax paid by  Amy       = 15% of 20,000       = (15/100) *…

Q: Why do national income accountants include indirect business taxes in the income approach to GDP…

A: The income approach determines the cost of production, and then adjusts it to equal the market value…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: Tax revenue means the income earned through taxation by the government.

Q: The following questions relate to the information in the table below. Billions of dollars $1,349.5…

A: Disclaimer: Since you have posted a question with multiple subparts, I am providing you with the…

Q: The market value of all finished goods and services produced within an economy during a year…

A: In an economy, gross domestic product is an economic measure to compute the national income on…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: The majority of the government's usual revenue comes from taxes. Taxes, which are imposed on people…

Q: Consumption Gross Government Real GDP (after taxes) Investment Net Exports Purchases $0 -$20 $10 $+5…

A: The Gap Between real Gross domestic production and GDP at full employment is known as the…

Q: GDP at market prices R397bn Net primary income payments to the rest of the world R37bn Indirect…

A: Given, GDP at market prices is R 397bn Net Primary income from ROW is R 37bn Indirect taxes is R…

Q: Depreciation is all the following, except   the consumption of fixed capital.   the accumulation of…

A: Depreciation is the decrease in value of an asset due to wear and tear.

Q: In April 2020, the US government made a one-time payment of US$1,200 to each US resident as part of…

A: Gross domestic product ( GDP)  refers to the total market value of goods and services produced…