Exhibit 11-8 GDP Data (Billions of Dollars) -In Exhibit 11-8,compute Personal Income (PI)

question 129

Multiple Choice

Exhibit 11-8 GDP data (billions of dollars)
$$\begin{array} { | l | r | } \hline \text { Indirect business taxes } & \$ 600 \\\hline \text { Depreciation } & 950 \\\hline \text { Change in business inventaries } & 50 \\\hline \text { Compensation of employees } & 5,400 \\\hline \text { Corparate profits } & 700 \\\hline \text { Durable goads } & 600 \\\hline \text { Expurts } & 100 \\\hline \text { Social Security taxes } & 360 \\\hline \text { Transfer payments } & 300 \\\hline \text { Fixed investment } & 950 \\\hline \text { Government 5pending } & 900 \\\hline \text { Imparts } & 150 \\\hline \text { Net interest } & 500 \\\hline \text { Nondurable goods } & 2,000 \\\hline \text { Persanal taxes } & 1,000 \\\hline \text { Rental income } & 200 \\\hline \text { Services } & 4,000 \\\hline\end{array}$$
-In Exhibit 11-8,compute personal income (PI) .Which of the following is correct?

• A) $7,110 billion.
• B) $7,410 billion.
• C) $6,740 billion.
• D) $7,760 billion.
• E) $6,780 billion.

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Definitions:

Different Values

The variation in importance, worth, or usefulness that individuals or societies attach to various factors or actions.

Expected Value

A calculation reflecting the average expected outcome of a probabilistic event, considering all possible outcomes weighted by their chances of occurrence.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Invest

To allocate resources, usually money, with the expectation of generating an income or profit.