GDP "Income" Flashcards
0
Q
Factor payments
A
- Rent (T)
- Wages (L)
- Interests (K)
- Profits (K)
1
Q
Determinants of the Income side
A
- Factor Payments
- Non factor Payments
- Capital Consumption Allowance -Depreciation
- Total Product = NET DOMESTIC PRODUCT + INDIRECT TAXES NET OF SUBSIDIES + (Depreciation) [national Income]
2
Q
Rent (T)
A
Payments for services of the land
3
Q
Wages (L)
A
Payments for services of labor
4
Q
Wages Formula
A
Take home pay + takes withheld + social security + pension funds + fringe benefits
5
Q
Interests (K)
A
Payments for services of loans (bank deposits)
6
Q
Profits (K) [Formula]
A
Payments for investments = Distributed + Non- Distributed
7
Q
Net Domestic Income [Formula]
A
Rent + Wages + Interests + Profits
[ T + L + IK + PK ]
8
Q
Non factor payments [Formula]
A
Indirect business taxes - Subsidies = Indirect taxes net of subsidies
Capital Consumption Allowance (Depreciation)
9
Q
Total Product (Formula)
A
Total Product = Net Domestic income + indirect taxes net of subsidies + (Depreciation) = National income
