Which of the Following Describes the Relationship Among Income,disposable Income,taxes,and

question 204

Multiple Choice

Which of the following describes the relationship among income,disposable income,taxes,and transfer payments?

• A) Taxes plus transfers equal income plus disposable income
• B) Disposable income equals income divided by the sum of taxes and transfers
• C) Disposable income equals income minus taxes plus transfers
• D) Disposable income equals income plus taxes plus transfers
• E) Taxes plus transfers equal disposable income minus income.

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Definitions:

Utility Function

An economic model that represents how different combinations of products or services can generate various levels of happiness or utility to a person, guiding choices.

Consumption

Consumption represents the use of goods and services by households, which is a primary component in calculating a nation's gross domestic product.

Lottery

A form of gambling that involves the drawing of numbers at random for a prize, often conducted by states or organizations.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.