Question

personal income and formula explain​

Answer 1

Explanation:

PI = Salaries/Wages Received + Interest Received + Rent Received + Dividends Received + Any Transfer Payments. OR. PI = NI – Taxes on Social Security – Corporate Tax – Undistributed profits + Social Security Benefits + Unemployment Benefits + Welfare Benefit.

Answer 2

Answer:

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1) In the first approach, Personal Income can derive by taking the sum of all the income received by the household members. A major portion of personal income cropped up from factors of production like land, labor, capital, and entrepreneur which includes rent, salaries, wages, interest, and profits respectively.