Mention should be made of the narrow notion of national income used by U.S. economists. In a narrower sense, national income is calculated as NNP minus all indirect taxes (excise taxes, taxes on cigarettes, gasoline and all other sales taxes). However, it should be borne in mind that all personal direct taxes, as well as […]
Tag: expenses
Theory of Comparative Advantage
From the theory of A. Smith it followed that the factors of production have absolute mobility within the country and move to those regions where they receive the greatest advantage. However, after some time, the advantage of some regions over others may disappear, therefore, trade will also stop. David Ricardo developed the theory of absolute […]