CA Foundation P4 · Chapter 5 · Question 15 of 15
Disposable personal income is equal to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Personal income minus direct personal taxes and miscellaneous fees and fines paid by households
Explanation
Personal income is income actually received by households, including transfers. Disposable personal income = personal income - personal direct taxes (and miscellaneous receipts of government such as fees and fines). It is available for consumption and saving. Indirect taxes are not deducted at this stage.
More Determination of National Income MCQs
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