Global Income Consist of

question 137

Multiple Choice

Global income consist of

• A)income from all sources.
• B)only earned income.
• C)all income less tax credits.
• D)all income subject to the federal income tax.

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Definitions:

Disposable Income

Discretionary income for households to utilize in their saving and spending after the enforcement of income taxes.

Consumption

Refers to the use of goods and services by households or individuals for personal needs or for leisure, as opposed to investment or savings.

Billion

A numerical value represented by 1,000 million or 10^9.

Induced Consumption

Consumer spending that varies with income, representing the portion of income that households spend on goods and services rather than saving.