Look at the Following Data: Personal Income = $4,900 Billion;

question 8

Multiple Choice

Look at the following data: personal income = $4,900 billion; personal taxes = $900 billion; transfer payments = $980 billion.What is disposable income?

• A) $3,200 billion
• B) $4,000 billion
• C) $4,980 billion
• D) $1,880 billion
• E) There is not enough information to answer the question.

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Definitions:

Cost Minimization

The process of reducing expenses to the lowest possible level while still achieving the desired level of output or quality.

Normal Rate Of Return

A rate of return on capital that is just sufficient to keep owners and investors satisfied. For relatively risk-free firms, it should be nearly the same as the interest rate on risk-free government bonds.

Economic Loss

A situation where the cost of making a product is greater than the revenue gained from selling it, resulting in a negative economic outcome.

Normal Rate Of Return

The average expected or required return on an investment or project, reflecting the usual profit level for the market or industry.