Use the following to answer questions:
-(Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. What is disposable income?
A) $0
B) $100
C) $400
D) $500

Question

Use the following to answer questions: 
-(Figure 7-1: Circular-Flow Model) Use Figure 7-1: Circular-Flow Model. What is disposable income?
A) $0 
B) $100 
C) $400 
D) $500

Quizplus · Accepted Answer

Disposable income is the total income households have after paying taxes and receiving government transfers. In the circular-flow model, it is typically represented as the income available for spending and saving, which is $400 in this case.

Use the Following to Answer Questions