Question

If national income is $5,000 billion, compensation of employees is $1,105 billion, proprietors’ income is $1,520 billion, corporate profits are $490 billion, and net interest is $128 billion, then rental income is equal to

Answer 1

Answer:

Rental income = $1,757 billion

Explanation:

National income is defined as the value of goods and services that a nation produces within a financial year.

Therefore it is made up of all economic actives that the nation is involved in.

The gross domestic product is a measure of the national income.

The formula for national income is given below

National income = employees compensation + proprietors' income + corporate profits + rental income +net interest

5,000 billion = 1,105 billion + 1,520 billion + 490 billion + rental income + 128 billion

Rental income = 5,000 billion - 3,243 billion

Rental income = $1,757 billion