Explain the Three Functions of Distributable Net Income (DNI)

question 13

Essay

Explain the three functions of distributable net income (DNI).

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Definitions:

Common Resource

A resource like air or water that is not owned by anyone, but its use is available to everyone, leading to potential overuse.

Consumption

Consumption refers to the act of using goods and services by households, contributing to the overall demand in an economy.

Availability

The condition of being accessible or obtainable.

Private Resource

Resources owned by individuals or companies, not by the government or public institutions.