Suppose net domestic product is $4.8 billion, net income earned abroad is $0.7 billion, other business income adjustments net of indirect business taxes and transfers are $0.4 billion, and personal income taxes are $0.8 billion. Then, national income equals
A) $2.9 billion.
B) $3.6 billion.
C) $5.9 billion.
D) $6.7 billion.

Question

Quizplus · Accepted Answer

National income is calculated by adding net domestic product and net income earned abroad, and then adjusting for other business income adjustments. So, $4.8 billion + $0.7 billion + $0.4 billion = $5.9 billion.

Suppose Net Domestic Product Is $4