Practicing Success
Which of the following is true? |
Both a and b are true a is true, b is not b is true, a is not Both a and b are false |
b is true, a is not |
The correct answer is Option 4: b is true, a is not Statement a) is incorrect. The income method for calculating national income is based on summing up compensation of employees, profits of businesses (NOT EBIT), net rental income of landlords, and net interest income. EBIT (Earnings Before Interest and Taxes) is an intermediate calculation used in financial accounting, not directly in the income method for national income. Statement b) GVA at basic prices + Net production taxes = GVAMP : This is correct. GVA at basic prices = GVAMP - Net production taxes |