Disposable personal income is the income that

Question

a. households and businesses have left after paying taxes and non-tax payments to the government.
b. households have left after paying taxes and non-tax payments to the government.
c. households and noncorporate businesses have left after paying taxes and non-tax payments to the government.
d. businesses have left after paying taxes and non-tax payments to the government.

Answer 1

Disposable personal income is the income that:

b. households have left after paying taxes and non-tax payments to the government.

This definition emphasizes that disposable personal income refers specifically to the income available to households after they have paid their taxes, which they can use for consumption or saving.