Disposable income can be defined as national product
A)minus federal and state taxes.
B)minus taxes plus transfers.
C)minus indirect taxes.
D)plus taxes plus transfers.

Question

Quizplus · Accepted Answer

Disposable income is the income that individuals have at their disposal after deducting taxes and adding government transfers. Therefore, Choice B, which says "minus taxes plus transfers," is the correct answer.

Disposable Income Can Be Defined as National Product