Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

A director is made redundant following a merger between companies. His salary was $80 000. During the first year after redundancy he earns $60 000 in consultancy fees, $10 000 in dividends on shares, and saves $8000 by dismissing his gardener. What change occurs in measured national income in the first year?

  • A+ $70 000
  • B+ $60 000
  • C– $80 000
  • D–$18 000

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