What is disposable income? How is it calculated?
Disposable income (DI) is the sum of the incomes of all individuals in the economy after all taxes have been deducted and all transfer payments have been added.
DI = GDP ? Taxes + Transfer payments
= GDP ? (Taxes ? Transfers)
= Y ? T
where Y represents GDP and T represents taxes net of transfers or simply net taxes.
Economics
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If a product is a normal good, then its income elasticity of demand is
A) zero. B) positive. C) negative. D) indeterminate. E) greater than 1.
Economics
William was asked to contribute money for a retirement home. He agreed to contribute only if his name appeared on the list of donators in the newsletter published by the home every year. This is an example of ________
A) rationalism B) liberalism C) impure altruism D) pure altruism
Economics