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Profit = Corporate Tax + Dividend + Retained Earnings. Explanation:- Profit is in the income from entrepreneurship. First corporate tax is paid out of it. From the rest, the dividend to the shareholders. The rest is the retained earnings of…
Operating Surplus does not arise in the General Government sector as it works with the motive of social welfare. Explanation:- The general Government only works for the welfare of the people. The income from property and entrepreneurship does not arise…
Net Exports refers to difference between Exports and Imports of a country during a period of one year. Explanation:- Net Exports – Exports – Imports
Expenditure Method is also known as Income Disposal Method. Explanation:- In this phase, Income earned is fully expended on goods and services produced. Thus another name of the expenditure method is the income disposal method. The other alternative name of…
Mixed Income is the income generated by own-account workers. Explanation:- The Mixed income refers to the income generated by own account workers (like doctors, lawyers, farmers, barbers, etc.) and unincorporated enterprises (like retail traders, shopkeepers etc).
Environmental Pollution caused by industrial plants is an example of Negative Externality. Explanation:- Externalities refer to the benefits or harms of an activity caused by a firm or an individual for which they are not paid or penalized. Activities resulting…
Real GDP = Nominal GDP/Price index × 100
Operating Surplus refers to sum total of income from property and income from entrepreneurship. Explanation:- Operating Surplus is the sum total of income from property and income from entrepreneurship. Income from Property are: Rent Royalty Interest Income from entrepreneurship are:…
The income method is also known as Distributive share Method or Factor Payment Method. Explanation:- The other name of income method are: Distributive share method Factor Payment method
Any reimbursement of business expenses incurred by employees is a part of intermediate consumption and not a part of compensation of employees. Explanation:- All expenses in business incurred in producing final goods and services are intermediate consumption. Thus business expenses…