The money that remains after paying for taxes and necessities is referred to as
A)net income.
B)discretionary income.
C)disposable income.
D)household income.
E)gross income.

Question

Quizplus · Accepted Answer

Discretionary income refers to the money that remains after paying for taxes and necessities, and is available for discretionary spending or saving. It is the amount of money that a person or household has to spend on non-essential items such as entertainment, vacations, hobbies, and luxury items. Therefore, choice B is the best answer.

Net income refers to income after deductions such as taxes, Medicare, and social security. Disposable income refers to income after deducting taxes. Household income refers to the total income earned by all members of a household. Gross income is the total income earned before any deductions.

The Money That Remains After Paying for Taxes and Necessities