Multiple choice

Personal disposable income is

  1. always equal to personal income

  2. always more than personal income

  3. equal to personal income minus indirect taxes

  4. equal to personal income minus direct taxes

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Personal disposable income is the amount of money that an individual has available for spending and saving after income taxes (direct taxes) have been deducted from their personal income.