The Total Income Earned Through the Use of Resources, Plus

question 5

Multiple Choice

The total income earned through the use of resources, plus taxes on production and on imports, equals

• A)national income.
• B)gross domestic product.
• C)personal income.
• D)disposable income.

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Definitions:

Net Income

The total earnings or profit of an individual or business after deducting expenses and taxes.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Variable Costs

Expenses that vary in relation to the amount of product or service produced by a company.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.