passwella.
Menu

JAMB Economics 1979 Question 43

Question 43

National Income

Disposable income equals

  1. A.personal income less business profits
  2. B.personal income less taxes and subsidies
  3. C.national income less borrowing from abroad
  4. D.national income plus transfer payments
  5. E.personal income less taxes plus subsidies.
Show the answer and explanation

Answer: E (personal income less taxes plus subsidies.)

Explanation

Disposable income is what households can actually spend: personal income after paying personal taxes, plus any subsidies they receive.