Refer to the Accompanying National Income Data (In Billions of

question 104

Multiple Choice

$$\begin{array} { | l | r | } \hline \text { Consumption of Fixed Capital } & \$ 25 \\\hline \text { Government Purchases } & 315 \\\hline \text { US imports } & 260 \\\hline \text { Personal Taxes } & 45 \\\hline \text { Transfer Payments } & 247 \\\hline \text { US Exports } & 249 \\\hline \text { Personal Consumption Expenditures } & 475 \\\hline \text { Net Foreign Factor Income } & 5 \\\hline \text { Gross Private Domestic Investment } & 300 \\\hline \text { Taxes on Production and Imports } & 245 \\\hline \text { Undistributed Corporate Profits } & 60 \\\hline \text { Social Security Contributions } & 240 \\\hline \text { Corporate Income Taxes } & 65 \\\hline \text { Statistical Discrepancy } & 40 \\\hline\end{array}$$ Refer to the accompanying national income data (in billions of dollars) . Personal income is

• A) $621 billion.
• B) $656 billion.
• C) $705 billion.
• D) $716 billion.

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Definitions:

Increased Efficiency

Improvements in operational performance that allow for the same or higher levels of output with less input, often through better processes or technology.

Annual Cash Savings

The amount of money saved in a year through various cost-cutting measures or efficiency improvements.

Salvage Value

An asset's expected selling price once it has concluded its functional life.

Financially Attractive

Describes an investment, project, or acquisition that promises significant financial returns or benefits.