6. LaunchPad . Tina is the sole owner of Tina's
Lawn Mowing, Incorporated (TLM). In one year,
TLM collects $1,000,000 from customers to mow
their lawns. TLM's equipment depreciates in value
by $125,000.TLM pays $600,000 to its workers,
who pay $140,000 in taxes on this income. TLM
pays $50,000 in corporate income taxes and pays
Tina a dividend of $150,000. Tina pays taxes of
$60,000 on this dividend income. TLM retains
$75,000 of earnings in the business to finance
future expansion. How much does this economic
activity contribute to each of the following?
a. GDP
b. NNP
c. National income
d. Compensation of employees
e. Proprietors' income
f. Corporate profits
g. Personal income
h. Disposable personal income
Answers
Answer:
s the sole owner of Tina’s Lawn Mowing, Incorporated (TLM). In one year, TLM collects $1,000,000 from customers to mow their lawns. TLM’s equipment depreciates in value by $125,000. TLM pays $600,000 to its workers, who pay $140,000 in taxes on this income. TLM pays $50,000 in corporate income taxes and pays Tina a dividend of $150,000. Tina pays taxes of $60,000 on this dividend income. TLM retains $75,000 of earnings in this business to finance future expansion. How much does this economic activity contribute to each of the following?a. GDP – $1,000,000b. NNP – $875,000c. National income – $875,000d. Compensation of employees- $600,000 e. Proprietors’ income – $0f. Corporate profits – $75,000g. Personal income – $150,000h. Disposable personal income – $90,0007. Consider an economy that produces and consumes hot dogs and hamburgers. In the following table are data for two different years.20102015GoodQuantityPriceQuantityPriceHot Dogs200$2250$4Hamburgers200$3500$4