Question

Which of the following is true regarding the national income accounts?
A.GDP>GNP
B.NNP>GNP
C.Personal income >national income
D.National income >NNP
E.Personal income > disposable income

Answer 1

$\bf {Answer :-}$ (b) NNP > GNP

$\bf {Reason :-}$ NNP at factor cost is known as national income of an economy. It is greater than GNP, Gross National Product because it has already been included in national income, NNP.

$\bf {Why \:other \:options \:are \:wrong?}$

❌ (a) GDP > GNP. Wrong because GDP includes depreciation also but GNP doesn't.

❌ (c) Personal income > National income. Wrong because, national income is the collection of personal incomes in the whole economy.

❌ (d) National income > NNP. Wrong because they both are equal. NNP is just a key abbreviation of national income.

❌ (e) personal income > disposal income. Wrong because they both are same. They are the amounts of money that households have available for spending and saving after income taxes have been accounted.

Answer 2

Answer:

No the answer is E

Explanation:

Personal income includes payments to individuals (income from wages and salaries, and other income), plus transfer payments from government, less employee social insurance contributions. Disposable personal income measures the after-tax income of persons and nonprofit corporations.