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1.On reaching 65 years, a builder earning $30, 000 per year sells his firm for $200, 000 but stays on as a consultant for a
1.On reaching 65 years, a builder earning $30, 000 per year sells his firm for $200, 000 but stays on as a consultant for a fee of $8, 000 per year. He receives an annual occupational pension of $9, 000. One of two assistants, each earning $12, 000, loses his job and is not eligible for state benefits. As a result, national income:
A)Rises by $175, 000
B)Rises by $166, 000
C)Falls by $25, 000
D)Falls by $34, 000
which is the correct answer
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