The money left from a person's gross income after taking out taxes is known as

The money left from a person's gross income after taking out taxes is known as

• A. Disposable income
• B. Distribution
• C. Destination
• D. Elasticity of demand

Answer: (A)

Disposable income is the amount of money a person has available to spend or save after income taxes are deducted. This figure is what people actually use for daily spending on goods and services, including hospitality and travel experiences. It differs from gross income, which is the total before taxes, and from other terms that describe different ideas (distribution is about how resources are spread or allocated, destination is where someone is headed, and elasticity of demand measures how sensitive purchases are to price). So the money left after taxes is disposable income.

Disposable income is the amount of money a person has available to spend or save after income taxes are deducted. This figure is what people actually use for daily spending on goods and services, including hospitality and travel experiences. It differs from gross income, which is the total before taxes, and from other terms that describe different ideas (distribution is about how resources are spread or allocated, destination is where someone is headed, and elasticity of demand measures how sensitive purchases are to price). So the money left after taxes is disposable income.