Question

question 7 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. 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. national income equals the total gross domestic product minus indirect business taxes.

Explanation:

National income (NI) is calculated as Net Domestic Product (NDP) minus Indirect Business Taxes (IBT). NDP is GDP minus depreciation, and subtracting IBT from NDP gives the income earned by factors of production, which is national income. So the formula NI = GDP - IBT (where GDP - depreciation = NDP) is a standard economic - accounting relationship.

Answer:

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