Money that remains after the costs of basic necessities have been paid is known as ________ income.

Question

Quizplus · Accepted Answer

Discretionary income is the money that is left over after essential expenses such as food, shelter, and clothing have been paid for. This leftover money can be used for non-essential purchases such as entertainment, vacations, or saving for the future. Real income refers to income that has been adjusted for inflation, and nominal income is the amount of money a person earns before accounting for inflation. Total personal income refers to all income earned by an individual, including wages, salaries, and income from investments. Therefore, the best choice is discretionary income.

Money That Remains After the Costs of Basic Necessities Have