To get personal income from national income, one must:

Question

Quizplus · Accepted Answer

To get personal income from national income, we need to subtract corporate profits and Social Security taxes from national income as they are not personal income. We also need to add transfer payments and other income (such as rental income, interest income, and dividend income) to get the total personal income. Retained earnings and corporate business taxes are also not included in personal income, but they are already subtracted out in national income. Therefore, the correct choice is B.

To Get Personal Income from National Income, One Must