Define personal income and disposable income.

Subject Economics
NU Year Set: 2.(e) Marks: 4 Year: 2012 Set: 6.(c) Marks: 4 Year: 2014

Personal Income:

Personal income refers to all income collectively received by all individuals or households in a country. Personal income includes compensation from a number of sources including salaries, wages, and bonuses received from employment or self-employment; dividends and distributions received from investments; rental receipts from real estate investments and profit-sharing from businesses.

Disposable Income:

Disposable income, also known as disposable personal income (DPI), is the amount of money that households have available for spending and saving after income taxes have been accounted for. Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy


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