Personal income is A. national income plus government transfer payments. B. equal to the value of all final goods and services produced within a country's borders during one year. C. national income minus income taxes. D. national income minus retained corporate earnings plus government transfer payments and interest on government bonds.

Question

Joel Hartman

Business

4 August, 22:07

Personal income is A. national income plus government transfer payments. B. equal to the value of all final goods and services produced within a country's borders during one year. C. national income minus income taxes. D. national income minus retained corporate earnings plus government transfer payments and interest on government bonds.

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Answers (1)

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Jayvon Mcdonald · Answer 1

Answer: The answer is A national income plus government transfer payment

Explanation:

Explanation : Personal income is the income or amount of money earned by individuals or household over a given period of time. Personal income is calculated by adding to national income, the income received by households but not earned, and subtracting incomes earned but not received.

Income received by households but not earned including transfer payments, interest payments, while undistributed profits contribution for social insurance are included in income earned but not received. After all these additions and subtraction to and from national income, what is left that gets to the pockets of individuals and households is known as personal income.