Question

Suppose that personal income is $250 billion. Furthermore, assume that retained corporate earnings are $2 billion, social security taxes are $15 billion, social security benefit checks equal $16 billion, the capital consumption allowance is $32 billion, and corporate taxes amount to $40 billion.

refer to scenario 5.1. gross national product of this nation will be:

A. 177 billion

B. 259 billion

C. 291 billion

D. 343 billion

E. 323 billion

refer to scenario 5.1. what will be the value of net value if net national product in this country?

A.209 billion

B. 219 billion

C. 283 billion

D. 291 billion

E. 323 billion

Answer 1

Question

Calculate the gross national product -

Gross national product = Personal income + retained corporate earnings + social security taxes + corporate taxes + capital consumption allowance - social security benefits

Gross national product = $250 billion + $2 billion + $15 billion + $40 billion + $32 billion - $16 billion

Gross national product = $323 billion

The gross national product is $323 billion.

Hence, the correct answer is the option (E).

Question 2

Calculate the net national product -

Net national product = Personal income + retained corporate earnings + social security taxes + corporate taxes - social security benefits

Net national product = $250 billion + $2 billion + $15 billion + $40 billion - $16 billion

Net national product = $291 billion

The net national product is $291 billion.

Hence, the correct answer is the option (D).