Table 52
National Income Accounts (Dollar Figures Are in Billions) on

question 40

Multiple Choice

$\begin{array}{|l|r|}\hline \text { Expenditures for consumer goods and services } & \$ 2,850 \\\hline \text { Exports } & \$ 300 \\\hline \text { Government purchases of goods and services } & \$ 810 \\\hline \text { Social Security taxes } & \$ 295 \\\hline \text { Net investment } & \$ 510 \\\hline \text { Indirect business taxes } & \$ 445 \\\hline \text { Imports } & \$ 450 \\\hline \text { Gross investment } & \$ 700 \\\hline \text { Corporate income taxes } & \$ 190 \\\hline \text { Personal income taxes } & \$ 875 \\\hline \text { Corporate retained earnings } & \$ 210 \\\hline \text { Net foreign factor income } & \$ 0 \\\hline \text { Government transfer payments to households } & \$ 780 \\\hline \text { Net interest payments to households } & \$ 20 \\\hline\end{array}$

Table 5.2
National Income Accounts (dollar figures are in billions) On the basis of Table 5.2,depreciation is

• A)$425 billion.
• B)$125 billion.
• C)-$125 billion.
• D)$190 billion.

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Definitions:

Salespersons

Individuals who sell goods and services to customers, aiming to meet customer needs and achieve sales targets.

Absorption Costing

An accounting approach that incorporates all costs of production, including both variable and fixed overheads, into the price of a product.

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead costs as period expenses.

Manufacturing Cost

This encompasses the total expenses related to producing goods, including costs for materials, labor, and overhead.