Economics Part A

GDP is also the national income

The following table indicates that the national income is $6,000. Mouseover here for the revenue and expenses of the bread sector’s table. Mouseover here for the revenue and expenses of the shoe sector’s table.

Total national income ($6,000) consists of $1,400 in workers’ wages and $4,600 in owners’ profits. All of the country’s production comes from either workers’ labor (their wages) or the firm owners’ efforts and capital investment (the firm’s profits).

Table 4.4

Bread sector

Shoe sector

Total

Wages

$700

$700

$1,400

Profits

$2300

$2300

$4,600

Total

$3,000

$3000

$6,000

GDP is also the national income583GDP is also the national income