ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 18, Problem 2.5P
To determine
The reasons and the most important factors for the difference in household incomes.
Concept Introduction:
Household income: It refers to the combined income from all people living together in a specific household. The income includes not only the salaries but also the income from any business or investments. The members of the household are not required to be related to one another to be the part of the household.
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8.
Includes all income earned: wages, profits, rent, and profit income within an Economy.
Question 8 options:
Trade Balance
Net Income
Gross Domestic Product
National Income
The income of Americans is on the rise. What happens to the sales of new luxury cars? Graph it
Income aproach
Table 2
Items
RM (Millions)
Wages and salary
1,050
Rent
850
Interest
880
Distributed Profit
1,300
Proprietor’s income
750
Depreciation
200
Undistributed profit
200
Transfer payment
75
Social security contribution
90
Personal Income Tax
110
Net factor income earned from abroad
89
Based on the above data, calculate:
Gross Domestic Income
Gross National Income
National Income
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