Which statement distinguishes state GDP from residents’ disposable income? » Graduate U.S. Economy MCQ » MCQ Academy

U.S. Economy

Which statement distinguishes state GDP from residents’ disposable income?

GDP measures in-state production, while disposable income tracks income available after personal taxes
GDP and disposable income both track household cash flow but use different price indexes
GDP records household net wealth whereas disposable income measures firms’ annual profit
GDP measures production by residents anywhere, while disposable income covers production inside the state

GDP measures in-state production, while disposable income tracks income available after personal taxes
GDP and disposable income both track household cash flow but use different price indexes
GDP records household net wealth whereas disposable income measures firms' annual profit
GDP measures production by residents anywhere, while disposable income covers production inside the state

Note

State GDP differs from personal income and disposable income because the measures cover different economic concepts.

GDP is a measure of production located in an economy; disposable personal income is income available to people after personal current taxes. Cross-border work and different income sources make these measures diverge. Household income aggregates also include transfers and earnings not captured as in-state production.

Tags: Economic Research Methods, New Jersey Facts

Note

Leave a Reply Cancel reply