Table 12-26 The Components of National Income for an Economy Are Represented

question 39

Multiple Choice

Table 12-26
$\begin{array}{|l|c|}\hline \text { National income } & \$ 1,000 \\\hline \text { Retained earnings not paid as dividends } & 50 \\\hline \text { Transfer payments } & 40 \\\hline \text { Interest on government bonds } & 20 \\\hline \text { Personal taxes } & 30 \\\hline\end{array}$ The components of national income for an economy are represented in Table 12-26 above. All values are in billions of dollars.
-Refer to Table 12-26.What is the level of disposable personal income for this economy?

• A) $1,080 billion
• B) $1,010 billion
• C) $980 billion
• D) $860 billion

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Definitions:

Short Run

A period in economics during which some factors of production are fixed, limiting the ability to fully adjust to market changes.

Elasticity of Market Supply

The degree to which the quantity supplied of a good changes in response to a change in price.

Output Expansion

The increase in the production of goods and services in an economy or by a firm, often as a result of increased demand or improved production capabilities.

Period Lengthened

The extension of time allocated for a particular activity, phase, or process.