Question

Q) In the national income accounts, what is the difference between


a. A firm’s buying an auto for an executive and the firm’s paying the executive additional income to buy the automobile herself?


b. Your hiring your spouse (who takes care of the house) rather than having him or her do the work without pay?


c. Your deciding to buy an American car rather than a German car?​

Answer 1

Answer:

Q) In the national income accounts, what is the difference between

a. A firm’s buying an auto for an executive and the firm’s paying the executive additional income to buy the automobile herself?

b. Your hiring your spouse (who takes care of the house) rather than having him or her do the work without pay?

c. Your deciding to buy an American car rather than a German car?

Answer 2

The difference between the two shows the profit or gain. (ii) The second account seeks to show how this profit and any other income that accrues to the transactor are allocated to different uses. The excess of income over outlay is saving. ... The 'sector accounts' form the units in a system of national income accounting.