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Distinguish between personal disposable income and national disposable income.

Asked by Topperlearning User 15th April 2016, 2:30 PM
Answered by Expert

Personal disposable income and national disposable income:

i. Personal disposal income refers to disposal income of only the individuals and households in the country, whereas national disposable income refers to disposable income of the country as a whole.

ii. Personal disposable income is the sum total of household consumption and household saving, whereas national disposable income is the sum total of net domestic income at factor cost, net indirect taxes, net factor income from abroad and net current transfers from the rest of the world.

Answered by Expert 15th April 2016, 4:30 PM
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