Question

Q17
Which of the following is true
regarding Personal Disposable Income
(PDI)?
PDI = Personal Income - Personal tax
Q17_01
Q17_02
payments - Non-tax payment
PDI = Personal Income + Personal tax
payments + Non-tax payment
PDI = Personal tax payment + Non-tax
01
payments
PDI = National Income - Personal
Q17_04
Income + Non-tax payments​

Answer 1

Answer:

1 and 3 only

Explanation:

Statement 1 and 3 are correct: PDI is one of the parts of aggregate income of households. It is calculated by deducting Personal Tax Payments (income tax, for example) and Non-tax Payments (such as fines) from Personal Income (PI). This income is available with households for either consumption or savings.

Statement 2 is incorrect: As mentioned above It is calculated by deducting Personal Tax Payments (income tax, for example) and Non-tax Payments (such as fines) from Personal Income (PI) thus it is not similar to PI.