Question

One difference between net domestic product and national income is that net domestic product includes depreciation....

One difference between net domestic product and national income is that

net domestic product includes depreciation.
net domestic product doesn't include Social Security taxes or corporate retained earnings.
net domestic product includes indirect business taxes and transfers.
national income includes government and business transfer payments.
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Answer #1

correct answer is D-national income includes government and business transfer payments.

So,National income (NI) is the total income earned by the citizens of the national economy resulting from their ownership of resources used in the production of final goods and services during a given period of time, usually one year. Net domestic product (NDP) is the total market value of all final goods and services produced within the political boundaries of an economy during a given period of time, usually a year, after adjusting for the depreciation of capital. Although national income is generated by the production of net domestic product, the value of production does not entirely result in earned income. In other words, national income can be derived from net domestic product after a few adjustments.

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