Question

question 18
the money that consumers have remaining after paying their necessary expenses is called
a gross income.
b fixed income.
c discretionary income.
d taxable income.

Explanation:

To solve this, we analyze each option:

• Option A (gross income): Gross income is total income before deductions, not remaining after expenses. Eliminate A.
• Option B (fixed income): Fixed income is income that doesn't vary (e.g., salary), not related to remaining after expenses. Eliminate B.
• Option C (discretionary income): By definition, discretionary income is the money consumers have left after paying necessary expenses (like rent, food) and can use for non - essential items (e.g., entertainment). This matches the description.
• Option D (taxable income): Taxable income is the income used to calculate tax liability, not about remaining after necessary expenses. Eliminate D.

Answer:

C. discretionary income