Use the following to answer questions :
Figure: Circular-Flow Model
-(Figure: Circular-Flow Model) Look at the figure Circular-Flow Model. What is disposable income?
A)$0
B)$100
C)$400
D)$500

Question

Use the following to answer questions :
Figure: Circular-Flow Model 
-(Figure: Circular-Flow Model) Look at the figure Circular-Flow Model. What is disposable income?
A)$0 
B)$100 
C)$400 
D)$500

Quizplus · Accepted Answer

Disposable income is the total income received by households minus any taxes paid, which in this figure is $400 ($900 - $500 = $400). Therefore, choice C is correct. Choices A, B, and D are incorrect.

Use the Following to Answer Questions