quiz 9 - Quiz # 9 Key Multiple choice questions: select the...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Quiz # 9 Key Multiple choice questions: select the best answer (two points each). 1. The personal income of an economy equals $7200. If households consumption expenditure equals $4500. private saving equals $2000, and total capital depreciation equals $300, the personal income tax of this economy equals $700 . b. $1000. c. $400. d. $3000. e. none of the above. Given PI=$7200; C=$4500; private saving S p = $2000, we need to find out T. I told you PI is the sum of C, T, and S p . PI = C + S p + T T = PI C S p = 7200 4500 2000 = $700 . Capital depreciation is redundant here. 2. Given the following data: national income=$4 , 400; income earned but not received=$700; income received but not earned=$600, total depreciation=$90; and personal income taxes=$900; disposable income equals $3,400 . b. $3 , 590. c. $3 , 690. d. $4 , 190. e. none of the above. First look up what are given, you know DI equals PI minus T, You do not have PI, therefore, you first task is to compute PI from the given information.therefore, you first task is to compute PI from the given information....
View Full Document

This note was uploaded on 01/18/2011 for the course ECON 11853 taught by Professor Brianallenhunt during the Fall '10 term at Georgia State University, Atlanta.

Page1 / 2

quiz 9 - Quiz # 9 Key Multiple choice questions: select the...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online