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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....
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- Fall '10
- gross domestic product, 5th millennium, government spending, NDP