Which of the Following Is a Component of Net Domestic

question 245

Multiple Choice

Which of the following is a component of net domestic product (NDP) , but NOT of national income?

• A) Capital consumption allowance
• B) Indirect business taxes
• C) Corporate taxes
• D) Personal taxes

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Definitions:

Expected Rate

Expected rate often refers to the anticipated return on an investment or the predicted growth rate of an economic variable over a certain period.

Optimal Amount

The most efficient, beneficial, or ideal quantity of a good, service, or resource allocation under given circumstances.

Perfectly Elastic

Describes a situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price.

Interest-Rate Cost-Of-Funds

The cost incurred by financial institutions to raise funds that they can then lend to customers, influenced by prevailing interest rates.