Disposable Income

Economics ⇒ National Income and Related Aggregates

Disposable Income starts at 12 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Disposable Income. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 12

A family’s personal income is ₹6,00,000. If they pay ₹1,00,000 as direct taxes, what is their disposable income?

A household receives a personal income of ₹3,00,000 and pays ₹30,000 as direct taxes. Calculate its disposable income.

A person’s personal income is ₹2,00,000 and disposable income is ₹1,80,000. What is the amount of direct taxes paid?

Define disposable income.

Describe how disposable income affects the consumption function in macroeconomics.

Describe the effect of an increase in disposable income on the savings rate of households.

Explain the difference between personal income and disposable income.

Explain the impact of a decrease in direct taxes on disposable income.

Explain the relationship between disposable income and aggregate demand.

Explain the significance of disposable income in the economy.

Explain why disposable income is considered a better indicator of economic welfare than personal income.

Explain why disposable income is important for measuring the standard of living.

If a person’s disposable income increases, what is likely to happen to their consumption and saving?

If a person’s personal income is ₹5,00,000 and direct taxes paid are ₹50,000, what is the disposable income?

If personal income is ₹4,00,000 and disposable income is ₹3,60,000, what is the amount of direct taxes paid?

If personal income is ₹7,50,000 and direct taxes are ₹1,50,000, what is the disposable income?

If the government increases direct taxes, what will be the effect on disposable income?

Is disposable income a flow concept or a stock concept?

State the formula for calculating disposable income.