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Calculate Personal Income by place of residence for State You are interested in

ID: 1156057 • Letter: C

Question

Calculate Personal Income by place of residence for State

You are interested in figuring out the personal income of residents in State “z" in the US. Using the data provided in the table below answer questions 2.1. and 2.2. (Hint: You are to accurately calculate the State "Z" personal income-make sure not to double count) Components of Personal Income, State "Z", 2017 All figures EXCEPT population are in thousands dollar Description Earnings by place of work Wages and salaries by place of work Adjustment for commuting/residence Total Contributions for government social insurance Employer contributions for government social insurance Employee/self-employed contributions for 31,642,789 21,952,609 1,223,696 3,927,393 2,021,012 1,906,38:1 9,231,044 5,554,356 755,393 overnment social insurance Dividends, interest, and rent Personal current transfer receipts Population Source: Bureau of Economic Analysis 2.1. Calculate Personal Income by place of residence for State "Z". Show the formulas you use and your calculations. 2.2. Calculate Per Capita Personal Income. Show the formulas you use and your calculations.

Explanation / Answer

2.1 Personal income is the sum total of all the incomes that are actually received by household from all sources (factor income and transfer income).

Personal income = Earnings by place of work + Employer contributions for government social insurance + Dividends, interest and rent + Personal current transfer receipt

Personal income = 31642789 + 2021012 + 9231044 + 5554356

Personal income = $48,449,201

**Here we assume that , earning from place of work includes the wages and salaries in cash and kind**

2.2

Per Capita personal income = personal income / population

Per capita personal income = 48,449,201 / 755393

Per capital personal income = 64.13774

Figures are in thousand dollar so

Per capital personal income = 64,137.74

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