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: meaning
Curves of indifference. Solving the problem of the optimal choice of the consumer
The basis for the study of personal consumption (individual consumers and households) are indifference curves. The indifference curve is a line, each point of which represents such a combination of two goods that the consumer does not care which of them to choose. Indifference curves graphically reflect the consumer’s system of preferences. For the convenience […]