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WAEC Economics 2014 Question 10

Question 10

National Income

Disposable income is the income earned

  1. A.by the nationals of a country resident within the country.
  2. B.from productive activities of nationals of a country both at home and abroad.
  3. C.when personal income tax is deducted from personal income.
  4. D.when the gross income of an individual is added to person income tax.
Show the answer and explanation

Answer: C (when personal income tax is deducted from personal income.)

Explanation

Disposable income = personal income − personal income tax.