Which of the following does not account for some of the differences between national income and gross domestic product?
A) Foreign-earned income by U.S. residents
B) Income taxes
C) U.S.-earned income by foreign residents
D) Depreciation
E) Business transfers and subsidies

Question

Quizplus · Accepted Answer

Income taxes do not account for differences between national income and gross domestic product (GDP) because they are a redistribution of income rather than a production or income generation activity. National income and GDP calculations focus on the value of goods and services produced and the incomes generated from that production, not on how income is redistributed through taxes.

Which of the Following Does Not Account for Some of the Differences