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Q: Personal Income - Personal tax payments - Non-tax payments =
  • A. Net National Product at factor cost
  • B. National Income
  • C. Personal Disposable Income
  • D. Gross National Product
Correct Answer: Option C - Personal Disposable Income (PDI) is amount of money that an individual or household has to spend after income tax have been deducted. Discretionary income is part of PDI as it is the amount of net income remaining after all basic necessities are covered. Personal Disposable Income = Personal Income - Personal tax payments - Non tax payments.
C. Personal Disposable Income (PDI) is amount of money that an individual or household has to spend after income tax have been deducted. Discretionary income is part of PDI as it is the amount of net income remaining after all basic necessities are covered. Personal Disposable Income = Personal Income - Personal tax payments - Non tax payments.

Explanations:

Personal Disposable Income (PDI) is amount of money that an individual or household has to spend after income tax have been deducted. Discretionary income is part of PDI as it is the amount of net income remaining after all basic necessities are covered. Personal Disposable Income = Personal Income - Personal tax payments - Non tax payments.