Question : Personal disposable income (PDI) can be defined as ______.
Option 1: Personal Income (PI) + Personal tax payments + Non-tax payments
Option 2: Personal Income (PI) + Personal tax payments – Non-tax payments
Option 3: Personal Income (PI) – Personal tax payments – Non-tax payments
Option 4: Personal Income (PI) – Personal tax payments + Non-tax payments
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Correct Answer: Personal Income (PI) – Personal tax payments – Non-tax payments
Solution : The correct answer is Personal Income (PI) - Personal tax payments - Non-tax payments.
Disposable income, also known as disposable personal income, refers to the money left over after income taxes are deducted for household consumption, savings, and expenditure. It is calculated to assess the general state of the national economy.
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