_____________ is the money that is available from an individual's salary after he/she pays local, state, and federal taxes.

Correct option is C

The correct answer is (c) Disposable Income.

Explanation:

Disposable income refers to the amount of money that an individual has left after paying taxes, including local, state, and federal taxes. It represents the net income that can be used for saving, spending, or investing.

• Personal Income: This is the total income earned by an individual, including wages, salaries, interest, dividends, and other sources. However, it does not account for deductions like taxes.
• Disposable Income: This is derived from personal income after subtracting taxes. It indicates the actual money available for personal use.
• Per Capita Income: This is the average income earned per person in a specific area (like a country or state) and is calculated by dividing the total income of the area by its population.
• National Income: This is the total income generated by a country, which includes the sum of all goods and services produced (GDP), minus depreciation and indirect taxes.

Information Booster:

·         Disposable income is a key indicator of an individual’s ability to spend and save.

·         It plays a critical role in assessing the purchasing power of households.

·         Economists use disposable income to study consumer behavior and economic growth.