Answer to Question #85748 in Macroeconomics for okyere foster

Question

one day, ben the barber collects ghc 400 for haircuts. over this day, his equipment depreciates in value of ghc50. of the remaining ghc350, ben sends ghc30 to the government in sales taxes, takes home ghc220 in wages, and retains ghc100 in his business to add new quipment in the future. from the ghc220 that ben takes home, he pays ghc70 in income taxes. base on this information, compute bens contribution to the following measures of income: national income

Answer 1

Based on this information, Bens contribution to the national income is ghc100 in his retained earnings and ghc 150 in wages after tax, so the total amount of contribution is ghc 250.