Disposable income is

Question

Quizplus · Accepted Answer

Disposable income is the amount of income that households have available after paying taxes and receiving transfers from the government. Therefore, it is calculated as income plus transfers minus taxes, making option B the correct answer. Option A is incorrect because it subtracts transfers, which is the opposite of what should be done. Option C is incorrect because it only considers expenditures, not taxes or transfers. Option D is also incorrect because it includes transfers but not taxes. Option E is incorrect because it subtracts transfers instead of adding them.

Disposable Income Is