Which of the following is correct regarding Personal Disposable Income?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Personal Disposable Income ≡ Personal Income – Personal tax payments – Non-tax payments
- The correct statement regarding Personal Disposable Income is:
- Personal Disposable Income ≡ Personal Income − Personal tax payments + Non-tax payments.
- Personal Disposable Income≡Personal Income−Personal tax payments+Non-tax payments.
- This formula represents Personal Disposable Income as the sum of personal income, minus personal tax payments, and plus non-tax payments.
- Personal Disposable Income reflects the amount of income available for consumption and savings after deducting taxes and adding certain non-tax payments.