The Amount of Income That Households Keep After Paying Taxes

question 59

Multiple Choice

The amount of income that households keep after paying taxes is

• A) national income.
• B) personal income.
• C) personal disposable income.
• D) value added income.

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Definitions:

Tragedy of the Commons

A situation in which individuals, acting according to their own self-interest, deplete shared resources, resulting in long-term social losses.

Litter

Discarded waste material improperly left in an environment outside designated trash disposal facilities.

Externality Analysis

The examination of costs or benefits that affect parties who are not directly involved in a transaction or activity, used to understand the implications of external effects on society.

Public Good

A product or service that is available for all members of society to consume, regardless of whether they contribute to its provision.