Stacey has just received her first paycheck. As a responsible spender, Stacey pays her housing, food, and necessary clothing expenses first. The money that remains after paying those expenses is called
Discretionary income is the money remaining after paying for necessities like housing, food, and clothing, available for non-essential spending. Option A (disposable income) is income after taxes, including money for necessities. Option C (supplementary income) is not a standard term. Option D (passive income) is earned without active work, like investments. This question aligns with the Accounting and Finance category, emphasizing personal finance.
[Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Personal Finance, Chapter 3., ]
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