BuyFind

Principles of Microeconomics

7th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305156050
BuyFind

Principles of Microeconomics

7th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305156050

Solutions

Chapter
Section
Chapter 18, Problem 1CQQ
Textbook Problem

Approximately what percentage of U.S. national income is paid to workers, as opposed to owners of capital and land?

  1. a. 30 percent
  2. b. 50 percent
  3. c. 70 percent
  4. d. 90 percent

Expert Solution
To determine
The competitive firm hiring labor.

Answer to Problem 1CQQ

Option ‘c’ is the correct answer.

Explanation of Solution

Option (c):

The share of national income paid to a worker against owners of capital and land is nearly 70%. Thus, option ‘c’ is correct.

Option (a)

The given amount of share is less than the actual share. Therefore, option ‘a’ is incorrect.

Option (b)

The given amount of share is less than the actual share. Hence, option ‘b’ is incorrect.

Option (d)

The given amount of share is greater than the actual share. Therefore, option ‘d’ is incorrect.

Economics Concept Introduction

Concept introduction:

National income: National income refers to the sum of all the income received within a given period of time.

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