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Which of the following options represents the total income earned by individuals from all the sources before deduction of personal income taxes?
Disposable income
Personal income
Gross income
National income
- Disposable Income: This is the amount of money individuals have after taxes have been deducted. It's available for spending or saving.
- Personal Income: This includes total income from all sources before personal income taxes are deducted. It encompasses wages, investments, and other sources.
- Gross Income: Typically refers to the total earnings before deductions like taxes, retirement contributions, or other withholdings, but usually within a business or investment context.
- National Income: This is the total income earned by a country’s residents and businesses, including wages, investments, and profits within a specific time period, typically a year.
Correct Answer:
- Personal Income is the correct option that represents the total income earned from all sources before deduction of personal income taxes.
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