Explain the Three Functions of Distributable Net Income (DNI)

question 13

Essay

Explain the three functions of distributable net income (DNI).

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Definitions:

Normative

Pertaining to norms or standards, often referring to analyses or statements that express how things should be rather than how they are.

Positive Economic

Refers to economic theories or policies that lead to beneficial outcomes in terms of growth, employment, and living standards.

Federal Minimum Wage

The lowest hourly wage that an employer can legally pay their employees, as set by the federal government.

Unemployment

The state of being without a job while actively looking for employment.