Question

    From the following data, find National income.

    Compensation of employees

    1866.3

    Business interest payments

    264.9

    Rental income of persons

    34.1

    Corporate profits

    164.8

    Proprietors' income

    20.3

    Corporate dividends

    66.4

    Personal taxes

    402.1

    Interest paid by consumers

    64.4

    Interest paid by government.

    105.1

    Government and business transfers

    374.5

    Personal consumption expenditures

    1991.9

    A 2350.4 Correct Answer Incorrect Answer
    B 2516.8 Correct Answer Incorrect Answer
    C 3097.1 Correct Answer Incorrect Answer
    D 2444.9 Correct Answer Incorrect Answer
    E 2309.6 Correct Answer Incorrect Answer

    Solution

    National income = compensation of employees + business interest payments + rental income of persons + corporate profits + proprietor’s income. National income = 1866.3 + 264.9 + 34.1 + 164.8 + 20.3 = 2350.4

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