Suppose net domestic product is $4.8 million,government and business transfer payments are $0.7 million,indirect business taxes are $0.4 million,and personal income taxes are $0.8 million.Then,national income equals
A)$2.9 million.
B)$3.6 million.
C)$4.4 million.
D)$5.1 million.

Question

Quizplus · Accepted Answer

National income is calculated by adding net domestic product and indirect business taxes, then subtracting subsidies (if any, but not mentioned here). Given net domestic product is $4.8 million and indirect business taxes are $0.4 million, national income equals $4.8 million + $0.4 million = $5.2 million. However, since none of the options match this calculation directly and considering the components provided, it seems there might be a misunderstanding in the calculation process. Typically, to find national income, you would start with the net domestic product and adjust for indirect business taxes, but the question's options suggest a different calculation might be intended. Given the options and the components provided (without considering subsidies since they're not mentioned), the closest approach would be to consider net domestic product and adjust for taxes and transfers indirectly, but the correct calculation directly for national income from the given data isn't fully represented by the options provided. Therefore, the response assumes a direct calculation isn't possible with the given options and data.

Suppose Net Domestic Product Is $4