Which of the following is the correct equation for computing personal income?
A) Personal income = National income + undistributed profits - social insurance taxes - corporate profits taxes + transfer payments.
B) Personal income = National income - undistributed profits - social insurance taxes + corporate profits taxes + transfer payments
C) Personal income = National income - taxes
D) Personal income = National income - undistributed corporate profits - social insurance taxes - corporate profits taxes + transfer payments
E) none of the above

Question

Quizplus · Accepted Answer

Personal income is calculated by adjusting the national income for items that do not go directly to individuals. This includes subtracting undistributed corporate profits and taxes (such as social insurance and corporate profits taxes) and adding transfer payments, which are forms of income like social security or unemployment benefits that individuals receive directly.

Which of the Following Is the Correct Equation for Computing