Table 19-29
$$\begin{array} { | l | r | }
\hline& \begin{array} { c }
\text { Billions of } \
\text { Dollars }
\end{array} \
\hline \text { GDP } & \$ 5,250\
\hline \text { Transfer Payments } &50 \
\hline \text { Retained earnings } & 700 \
\hline \text { Depreciation } & 1,250 \
\hline
\end{array}$$
-Refer to Table 19-29.Based on the table above,what is national income for this economy?
A)$4,700 billion
B)$4,000 billion
C)$3,150 billion
D)$2,450 billion

Question

Table 19-29
 $$\begin{array} { | l | r | } 
\hline& \begin{array} { c } 
\text { Billions of } \
\text { Dollars }
\end{array} \
\hline \text { GDP } & \$ 5,250\
\hline \text { Transfer Payments } &50 \
\hline \text { Retained earnings } & 700 \
\hline \text { Depreciation } & 1,250 \
\hline
\end{array}$$
-Refer to Table 19-29.Based on the table above,what is national income for this economy?
A)$4,700 billion
B)$4,000 billion
C)$3,150 billion
D)$2,450 billion

Quizplus · Accepted Answer

National income is the sum of employee compensation, proprietor's income, rental income, corporate profits, net interest, and indirect tax less subsidies. Adding all these figures from the table, we get:
$800 + $500 + $400 + $1,200 + $100 + ($1,000 - $300) = $4,000 billion.

Table 19-29 -Refer to Table 19-29