Answer: See explanation
Explanation:
This is the remainder of the question:
How much does this economic activity contribute to GDP, NNP, National income, compensation of employees, Proprietors' Income, corporate profits, personal income, disposable personal income?
a. GDP – $1,000,000
The GDP is the value for the goods and services that a country sells. To loan customers lawns, Tina collects $1,000,000.
b. NNP – $875,000
NNP = GDP - Depreciation
= $1000000 - $125000
= $875000
c. National income – $875,000
d. Compensation of employees- $600,000
This is the amount paid by the company to its workers for work done as wages and salaries.
e. Proprietors’ income – $0
Because it is a Corporation, this will be $0.
f. Corporate profits – $275,000
This will be:
= $50,000 + $150,000 + $75000
= $275000
g. Personal income – $750,000
= NNP + Dividend - Profit
= $875000 + $150000 - $275000
= $750000
h. Disposable personal income – $550000
= $750000 - $60000 - $140000
= $550000
