Answer :
Answer:
b. income plus government transfers minus taxes.
Explanation:
Disposable Income: It is defined as amount of money that individual have after paying taxes and other necessities. It is the saving that individual have and these income decide the purchasing power of the individual. The data of disposable income of the target customer help the businesses around to track and analyze, what kind product and price should be available in the region.
Final answer:
Disposable income is defined as total household income minus taxes, plus any government transfers. In terms of the options provided, the correct answer is 'b. income plus government transfers minus taxes.'
Explanation:
In economics, the term disposable income refers to the total amount of household income that is available for spending and savings after taxes have been accounted for. So, from the options given the correct answer is: b. income plus government transfers minus taxes.
Let me explain this with an example - if a family has an income of $100,000, receives government transfers of $20,000 and pays $30,000 in taxes, their disposable income will be:
$100,000+[income] + $20,000[Government Transfers] - $30,000[taxes]
= $90,000[Disposable income]
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