Transfer Payments Are Subtracted from Net National Income to Get

question 123

True/False

Transfer payments are subtracted from net national income to get to Household income.

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Definitions:

External Benefits

Benefits of a good or service that are enjoyed by people other than the ones who originally purchase or consume the good.

Marginal Social Cost

The complete expense incurred by society to produce an extra unit of a product, incorporating both individual costs and external effects.

Marginal Social Benefit

The additional benefit to society as a whole from producing one extra unit of a good or service.

Optimal Quantity

The amount of a product or service that maximizes efficiency, balancing costs and benefits to achieve the best possible outcome.