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, such as housing, food, and transportation. This money can be used for discretionary spending, such as entertainment, travel, or saving for the future. It is an important measure of a household's financial health, as it reflects their ability to save and invest for the future. Net income refers to income after taxes are deducted, while disposable income refers to income after taxes and mandatory expenses (such as rent or mortgage payments) are deducted. Household income refers to total income earned by all members of a household, while gross income refers to total income before taxes are deducted.

Money That Remains After Paying for Taxes and Necessities Is