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REGULATORY POLICY: Government policy based on government's ability to pass laws and enact regulations.

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Lesson 10: Gross Domestic Product | Unit 4: Measuring Income Page: 21 of 25

Topic: IRBNE <=PAGE BACK | PAGE NEXT=>

Income received by households but not earned by the factors of production (IRBNE) is added to national income to derive personal income. IRBNE are transfer payments.
  • Households without factors of production receive income through transfer payments such as:
    1. Social Security benefits.
    2. Welfare payments.
    3. Unemployment compensation.
  • To calculate personal income, income earned but not received (IEBNR) is subtracted from and income received but not earned (IRBNE) is added to national income.

PI = NI - IEBNR + IRBNE


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COMPARATIVE STATICS

The technique of comparing the equilibrium resulting from a change in a determinant, or shock to a model, with the equilibrium that existed prior to the change. Comparative statics is the primary analytical technique used in the study of economics.

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Today, you are likely to spend a great deal of time watching the shopping channel seeking to buy either a turbo-powered vacuum cleaner or a battery-powered, rechargeable vacuum cleaner. Be on the lookout for high interest rates.
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Much of the $15 million used by the United States to finance the Louisiana Purchase from France was borrowed from European banks.
"Sometimes when you innovate, you make mistakes. It is best to admit them quickly and get on with improving your other innovations. "

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