Q.Distinguish between:
Personal income and Personal disposable income.

National Income is income earned, not necessarily income received by households. Personal Income adjusts for this: $PI = NI - \text{Corporate Tax} - \text{Undistributed Profits} - \text{Social Security Contributions} + \text{Transfer Payments}$. Disposable Income goes further, deducting direct taxes and miscellaneous fees: $DI = PI - \text{Direct Taxes} - \text{Miscellaneous Fees}$ — this is the income households genuinely have left to spend or save. Per Capita Income divides national income by mid-year population, $PCI = \text{Natio …