Read the two statements and choose the correct option.

I. Personal income can be greater than national income.

II. Personal disposable income is always less than or equal to personal income.

Explanation

1. 01

   If transfers to households exceed corporate tax, retained profit and net interest, PI > NI. I is true.

2. 02

   PDI = PI − taxes and fees, which cannot be negative, so PDI ≤ PI. II is true.