The part of income after tax that is not consumed is defined as

Step 1: Analyze the question The question asks for the term for the part of income after tax (disposable income) that is not consumed.

Step 2: Explain the concept Disposable income is what a person has left after paying taxes. The household can do only two things with it:

• Spend it on goods and services, which is consumption.
• Keep it, which is saving.

So: Disposable income = Consumption + Saving This means: Saving = Disposable income − Consumption

Step 3: Check each option

• A. Wages and salaries: These are payments for labour, a form of income, not what remains after consumption.
• B. Saving: This is exactly the portion of disposable income that is not spent on consumption. ✔
• C. Capital investment: This is spending by firms (or individuals) on capital goods such as machinery and buildings. It is related to saving, since savings fund investment, but it is not the definition of unconsumed income.
• D. Nondurable goods expenditure: This is a type of consumption (food, fuel, etc.), so it is the opposite of what the question asks.

Step 4: Answer The correct answer is B. Saving.

💡 Exam tip: Remember the chain Income → Tax → Disposable income → (Consumption + Saving). Whenever a question says "income not spent" or "not consumed", think saving. Also, don't confuse saving (the household's decision not to spend) with investment (spending on capital goods).