Household's disposable income is given by: GDY (at market prices)

Question

Household's disposable income is given by: GDY (at market prices) - taxes paid by firms +
 subsidies received by firms - depreciation - undistributed profits - personal taxes + benefits.

Quizplus · Accepted Answer

Household's disposable income is the income available to households for spending and saving after taxes and other deductions have been made. The formula provided correctly calculates disposable income by subtracting taxes paid by firms, depreciation, undistributed profits, and personal taxes from GDY (at market prices) and adding subsidies received by firms and benefits.