Question

One day, Barry the Barber, Inc., collects $400 for hair cuts. Over this day, his equipment depreciates in value by$50. Of the remaining $350, Barry sends$30 to the government in sales taxes, takes home $220 in wages, and retains$100 in his business to add new equipment in the future. From the $220 that Barry takes home, he pays$70 in income taxes. Based on this information, compute Barry’s contribution to the following measures of income. a. gross domestic product b. net national product c. national income d. personal income e. disposable personal income

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We have to compute Barry’s contribution to different measures of income.

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