Answer to Question #83585 in Microeconomics for Sagun

Question

What difference would it make to national income accounts if instead of purchasing a car for the use of its general manager, a company gives her extra salary to buy that car?

Answer 1

offering the general manager an extra salary to buy a car would mean that the company will be affected financially since it will dig deeper to pay the extra salary. in return the national income accounts will record more money paid in salaries.