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

question 4

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,national income is

• A)$4,020 billion.
• B)$3,785 billion.
• C)$2,475 billion.
• D)$3,595 billion.

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Definitions:

Income Tax Expense

The total amount of income tax a company is required to pay to tax authorities, as calculated based on taxable income.

Deferred Tax Liability

A tax obligation that a company owes but is not due to be paid until a future period, often resulting from timing differences in recognizing income and expenses for tax and accounting purposes.

Deferred Tax Asset

A deferred tax asset is an accounting term used to describe a situation where a business has paid more taxes or anticipates paying more taxes than it is currently liable for.

Income Tax Liability

The total amount of income tax that an individual or corporation owes to tax authorities.