Economics Homework Help

Tina is the sole owner of Tina’s Lawn Mowing, Incorporated (TLM).

In one year, TLM collects $1,000,000 from

customers to mow their lawns. TLM’s

equipment depreciates in value by $125,000. TLM pays $600,000 to its workers,

who pay $140,000 in taxes on this income. TLM pays $50,000 in corporate income

taxes and pays Tina a dividend of $150,000. Tina pays taxes of $60,000 on this

dividend income. TLM retains $75,000 of earnings in the business to finance future

expansion. How much does this economic activity contribute to each of the

following?

a. GDP

b. NNP

c. National income

d. Compensation of employees

e. Proprietors’ income

f. Corporate profits

g. Personal income

h. Disposable personal income