Personal Disposal Income = Personal Income − ________.

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SSC JE Civil 14 Nov 2022 Shift 1 Official Paper
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  1. Subsidies
  2. Personal tax
  3. Rent
  4. Wages

Answer (Detailed Solution Below)

Option 2 : Personal tax
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The correct answer is personal taxKey Points

  • Personal Disposal Income = Personal Income - Personal Income tax.
  • Personal disposable income can be calculated by subtracting personal income tax payable from personal income (wages, commission, salary).
  • Personal Disposable Income refers to the amount of money available to an individual or household to spend or save after income tax and other mandatory taxes have been deducted. 
  • It helps economists to measure the savings and spending rates of households.

Additional Information

  • A subsidy is a benefit given to an individual, household, or institution by the government usually in order to reduce the beneficiary's expense.
  • Rent is referred to as the part of the produce which is paid to the owner of land for the use of his goods and services.
  • Wages are the remunerations that a person gets in return for the service provided by him.
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