Economic-what is Disposable income?

Question

Disposable income is

equal to GDP minus the capital consumption allowance.

that portion of personal income that can be used for consumption and saving.

the sum of all payments to suppliers of the factors of production.

the amount of income that individuals actually receive.

another term for personal income.

Answer 1

b) that portion of personal income that can be used for consumption and saving.

Though "the amount of income that individuals actually receive." is close too (but stick on "b").

Answer key is here:

http://www.swcollege.com/bef/arnold/inst...