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Which of the following is added to national income while calculating personal income?

ATransfer payments to individuals

BSocial security contributions

CCorporate taxes

DUndistributed profits

Answer:

A. Transfer payments to individuals

Read Explanation:

Personal income refers to the income of the individuals of a country. While transfer payments are added, the other three are subtracted.


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Consider the following statements and identify the right ones. 

  1. National income is the monetary value of all final goods and services produced. 
  2. Depreciation is deducted from gross value to get the net value