Question

If disposable income is $20 trillion, taxes are $6 trillion, and transfers are $4 trillion, then income is $_____ trillion. Please choose the correct answer from the following choices.a) 14 b) 18 c) 22 d) 30

Answer 1

c) $22 trillion.

Explanation:

We have been given that disposable income is $20 trillion, taxes are $6 trillion, and transfers are $4 trillion. We are asked to find income in trillions.

`\text{Disposable income}=\text{Income}+\text{Transfers}-\text{Taxes}`

`\$20=\text{Income}+\$4-\$6`, where each amount is in trillions.

`\$20=\text{Income}-\$2`

`\$20+\$2=\text{Income}-\$2+\$2`

`\$22=\text{Income}`

Therefore, the income is $22 trillion.