How Does Net Domestic Income Differ from Gross Domestic Product

question 12

Multiple Choice

How does net domestic income differ from gross domestic product? Net domestic income is GDP minus

• A)that part of it not actually paid to households, plus transfer payments to households.
• B)that part of it not actually paid to households, plus transfer payments to households, minus personal taxes paid by households.
• C)the sum of corporate, personal and sales taxes paid to the government.
• D)replacement investment.
• E)that part of it not actually paid to households, minus personal income taxes paid by households.

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Definitions:

Sulfuric Acid

A highly corrosive mineral acid with the chemical formula H2SO4, used in various industrial processes and as a chemical reagent.

Industrial Mineral

Minerals that are mined and processed for their non-metallic properties, used in a variety of industrial applications.

Batteries

Electrochemical cells that convert stored chemical energy into electrical energy, used as a power source for numerous devices.

Acetic Acid

An organic compound with the chemical formula CH3COOH, which is a clear, sour-tasting liquid that is the main component of vinegar apart from water.