Question

Disposable income in a particular period is: a earned income plus government transfer payments less taxes. b total earned income. c earned income plus government transfer payments. d earned income plus government transfer payments less taxes and savings.

Answer 1

Earned income plus government transfer payments less taxes.

Step-by-step explanation:

Disposabal income refers to the income earned by the households after adjusted for the taxes and transfer payments by the government. Transfer payments refers to the payments by the government which includes social security schemes, cash grants, unemployment benefits.

It is also defined as the amount of money available that individuals have for disposal.