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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