2.1 - The Income Method
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Practice Questions
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What does National Income represent?
💡 Hint: Think about how wealth is generated in an economy.
List the four main components of the Income Method.
💡 Hint: Remember the acronym WIRP.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is National Income primarily used for?
💡 Hint: Think of how actuaries use this metric.
The Income Method includes which of the following?
💡 Hint: Refer back to what WIRP stands for.
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Challenge Problems
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If a nation has the following data: Wages = $600 billion, Rent = $150 billion, Interest = $80 billion, Profits = $100 billion. Calculate National Income and discuss what this indicates about the economy.
💡 Hint: Combine these figures to assess the economy.
How would introducing a new tax on profits affect National Income calculation? Discuss potential impacts on business investment.
💡 Hint: Focus on how businesses might respond to increased taxation.
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