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    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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