WBCS.LIVE practice question

Which of the following is true about disposable income in relation to personal income?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Disposable income is equal to personal income.
  2. Disposable income is always less than personal income.
  3. Disposable income is always greater than personal income.
  4. Disposable income can be greater or less than personal income, depending on taxes and deductions.

Correct answer and explanation

Correct answer: Disposable income is always less than personal income.