Which of the Following Does Not Help Account for the Difference

question 1

Multiple Choice

Which of the following does not help account for the difference between GDP and National Income (NI) ?

• A)depreciation
• B)net indirect business taxes
• C)personal income taxes
• D)earnings of American owned resources located abroad
• E)earnings of foreign owned resources located in the U.S.

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes to fixed costs and profit.

Contribution Margin

The amount of revenue available after variable costs have been deducted, which contributes towards covering fixed costs and generating profit.

Selling Price

The price at which a business offers its product or service for sale to consumers, determined by various factors including cost and market demand.

Manufacturing Overhead Cost

Indirect costs associated with manufacturing, not directly tied to the product, such as factory maintenance, utilities, and salary of the supervisory staff.