Macroeconomics

Question 1

What are the components of National Income?

Answer 1

Salaries and wages
Rents
Interest
Proprietor and partnership incomes
Corporate profits

Question 2

National Income

Answer 2

Net domestic product minus net foreign factor income and indirect business taxes (e.g., sales taxes).

Question 3

Three basic arguments in favor of Protectionism:

Answer 3

1. Reducing imports protects domestic jobs.
2. Certain industries are essential to national security.
3. Infant industries need protection in the early stages of development.