Which of the Following Is True of Disposable Income

question 49

Multiple Choice

Which of the following is true of disposable income?

• A)It excludes transfer payments.
• B)It is the portion of income that is used solely for consumption.
• C)It is that part of total earned income that is paid to the government in the form of taxes.
• D)It is the difference between income and saving.
• E)It equals consumption expenditures plus saving.

---

Definitions:

Natural Forces

Natural forces refer to the fundamental phenomena or energies inherent in the natural world, such as gravity, electromagnetism, and the forces driving climate and geological changes.

Arithmetically

Pertaining to or related to arithmetic, the basic branch of mathematics dealing with the properties and manipulation of numbers.

Geometrically

Pertains to or is characterized by the principles of geometry, involving shapes, sizes, and the relative positions of figures.

Negative Checks

In demographic terms, factors that decrease population growth, including disease, famine, and war, as described by Malthus.