The difference between personal income and disposable person

The difference between personal income and disposable personal income is that 0 A personal income does not include transfer payments, such as Social O B. personal income taxes are not included in disposable personal income O C. personal income includes personal income taxes O D. disposable personal income includes only the funds available to spend on non-necessities. Security payments or welfare payments and disposable personal income indludes them and indirect business taxes, which are not included in disposable personal income Click to select your answer 80 8 2 3 5

Solution

Correct option is (B).

Disposable personal income = Personal income - Personal income taxes

Therefore, while personal income includes personal income taxes, disposable personal income excludes personal income taxes.