One difference between net domestic product and national income is that
A) net domestic product includes depreciation.
B) national income includes government and business transfer payments.
C) net domestic product includes indirect business taxes and transfers.
D) net domestic product doesn't include Social Security taxes or corporate retained earnings.

Question

Quizplus · Accepted Answer

Net domestic product includes indirect business taxes, while national income does not. National income is derived from net domestic product by subtracting indirect business taxes and adding subsidies.

One Difference Between Net Domestic Product and National Income Is