National income equals

Question

Quizplus · Accepted Answer

National income is the total amount of income earned by a country's citizens and businesses in a given period, regardless of where they are located. The components of national income are compensation of employees, proprietors' income, corporate profits, rental income, and net interest. Indirect business taxes are not included in national income as they are considered a transfer of funds from businesses to the government. Fringe benefits and tips are subsets of compensation of employees and are already accounted for in the calculation of national income.

National Income Equals