Which of the Following Best Defines Disposable Income

question 32

Multiple Choice

Which of the following best defines disposable income?

• A)income received by households less personal taxes
• B)the before-tax income received by households
• C)all income earned by resource suppliers for their current contributions to production
• D)the market value of the annual output net of consumption of fixed capital

---

Definitions:

Making Profits

The process of generating financial gain from business activities after subtracting all expenses, taxes, and costs.

Gaining Prestige

The process of acquiring respect, honor, or recognition from others within a social group.

Marginal Geographical Areas

Areas located at the periphery or edge of regions, often characterized by less favorable conditions for human habitation or agriculture.

Potlatch

On the northwestern coast of North America, a ceremonial event in which a village chief publicly gives away stockpiled food and other goods that signify wealth.