Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?

• A) National income accountants consider the portion of corporate profits that is used to pay corporate profits taxes to be income earned by households but not received.
• B) Net domestic product (NDP)is a smaller dollar amount than GDP.
• C) Personal income includes transfer payments.
• D) b and c
• E) a,b,and c

---

Definitions:

Units of Labor

Quantifiable measurements of labor force input, such as hours worked or number of workers, used in economic analysis to assess productivity or costs.

Diminishing Returns

A principle stating that as additional units of a variable resource are added to a fixed resource, the marginal product of the variable resource will eventually decrease.

Fixed Input

A production factor that remains unchanged regardless of the level of output in the short run.