On the other hand, money received by individuals when they collectsocial security or unemployment compensation is not money earned but moneyreceived. Interest received on government bonds is also in this category,because much of the money received from the sale of bonds went to pay for warproduction and that production no longer furnishes a service to theeconomy.
The money people receive as personal income may be eitherspent or saved. However, not all spending is completely voluntary. A significantportion of our income goes to pay personal taxes. Most workers never receive themoney they pay in personal taxes, because it is withheld from their paychecks.The money that individuals are left with after they have met their taxobligations is disposable personal income. Disposable income can be dividedbetween personal consumption expenditures and personal savings. It is importantto remember that personal saving is what is left after spending.
1. Thispassage is mainly about
A. the classification of income.
B. thedifference between national income and personal income.
C. the concept ofincome.
D. the difference between disposable income and non-disposableincome.
2. Which of the following statements is true according to thefirst paragraph?
A. GNP equals national income plus indirect businesstaxes.
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