Question

The amount of money available with people after buying necessities such as food, clothing, and housing is referred to as _____. a. personal income b. discretionary income c. basic income d. gross income

Answer 1

Answer:

B) discretionary income

Explanation:

Consumer discretionary income is defined as the income that consumers have after paying all their essential needs, e.g. food, rent or mortgage, utilities, etc.

Discretionary income is not equal to disposable income, since disposable income = gross income - taxes

Personal income = gross income, or total income before paying taxes