What Is Disposable Income? - Definition & Explanation


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question 1 of 3

Which of the following is the best explanation of disposable income?

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1. Why must a business have customers with disposable income?

2. Why does a business need disposable income?

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About This Quiz & Worksheet

This quiz and worksheet combo will help you quickly assess your understanding of disposable income as it relates to businesses and individuals. You will be quizzed on what disposable income is and how it is calculated.

Quiz and Worksheet Goals

Use this printable quiz and worksheet to review:

  • The best explanation of disposable income
  • What mandatory expenses are taken into account when calculating disposable income
  • How to calculate disposable income
  • Why a business needs disposable income

Skills Practiced

  • Reading comprehension- ensure that you draw the most important information from the lesson on disposable income
  • Distinguishing differences- compare and contrast topics from the lesson, including disposable income and gross income
  • Knowledge application- use your knowledge to calculate disposable income

Additional Learning

To learn more about disposable income, review the accompanying lesson titled What Is Disposable Income? Definition & Explanation. The lesson covers the following objectives:

  • Define disposable income
  • Explain the concept of gross income versus disposable income
  • Provide an example of calculating disposable income