The answer to this should be C -- both A and B are
correct. That is, as long as B refers to indirect taxes on
businesses.
National income is a measure of how much income
businesses and households get from using productive resources in a given
year.
The way that you calculate national income is to take
GNP or GDP and then subtract depreciation and indirect business taxes from the gross
national or domestic product.
You can also get this number
by adding up various sorts of income, but in terms of your question, the formula where
you subtract things from GDP or GNP is all that matters.
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