Question

From the following data, find Personal disposable income.

Compensation of employees

1866.3

Business interest payments

264.9

Rental income of persons

34.1

Corporate profits

164.8

Proprietors' income

120.3

Corporate dividends

66.4

Personal taxes

402.1

Interest paid by consumers

64.4

Interest paid by government.

105.1

Government and business transfers

374.5

Personal consumption expenditures

1991.9

A 2450.4 Correct Answer Incorrect Answer
B 2516.8 Correct Answer Incorrect Answer
C 3097.1 Correct Answer Incorrect Answer
D 2578.6 Correct Answer Incorrect Answer
E 2429.5 Correct Answer Incorrect Answer

Solution

Personal income = National income – Corporate profits + Govt and business transfers + Interest paid by govt + Corporate dividends = 2450.4 – 164.8 + 374.5 + 105.1 + 66.4 = 2831.6 Personal disposable income = Personal income - personal taxes = 2831.6 - 402.1 = 2429.5.

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