Question

Which statement correctly distinguishes Private Income from personal income?

पर्याय

• Private income is a pre-tax measure; it does not equal personal income because further deductions are needed to arrive at personal income.

• Private income is a post-tax measure, whereas personal income is a pre-tax measure.

• Private income equals personal income because both exclude all transfer incomes.

• Private income excludes factor incomes, whereas personal income includes only factor incomes.

Answer 1

Private Income is measured before tax-related and other further deductions required for personal income. Therefore, Private Income does not equal personal income.