To ascertain: the list of categories that makes up are added to get the
Explanation of Solution
National Income | a. Wages and salaries |
b. Government payment | |
c. Corporate sector residual income | |
d. subsidies | |
e. Consumer interest |
Thus, National income includes payments to people (salaries and wages and other revenue), plus government payments (taxes), plus corporate-sector residual income (depreciation, undistributed profits), less changes (subsidies, policy and market interest, and statistical discrepancies). Measuring national income is crucial for various works, such as measuring the size of the economy and the level of economic success of the country; making predictions of the economy's future trend in growth. It helps the government to devise effective development plans and policies to increase the growth levels.
Introduction: Gross National Income (GNI) is classified as GDP (
Chapter 13 Solutions
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