Question

question 8 points 3 which of the following is true of the equation ni = gdp - ibt national income equals the total gross domestic product minus internal business taxes. national income equals the total gross domestic product minus indirect business taxes. the equation is incorrect. national income equals the total net domestic product minus indirect business taxes. the equation is incorrect. the net domestic product is equal to the gross domestic product minus indirect business taxes.

Explanation:

National income (NI) is calculated by subtracting Indirect Business Taxes (IBT) from Gross Domestic Product (GDP). Indirect business taxes are taxes like sales - taxes that are passed on in the price of goods and services. By subtracting them from GDP, we get to the income that actually accrues to factors of production, which is national income.

Answer:

The equation is correct. National income equals the total Gross Domestic Product minus Indirect Business Taxes.