Question
Which of the following equals gross income minus taxes?
Responses
Discretionary income
Discretionary income
Net income
Net income
Disposable income
Disposable income
General income
Responses
Discretionary income
Discretionary income
Net income
Net income
Disposable income
Disposable income
General income
Answers
GPT-4o mini
The term that equals gross income minus taxes is **Disposable income**.
Here’s a brief explanation of the terms involved:
- **Gross Income**: Total earnings before taxes and other deductions.
- **Disposable Income**: Gross income minus taxes; it is the amount available for spending and saving after the government has taken its share.
- **Discretionary Income**: This is the income remaining after all necessary expenses (including taxes, rents, and food) have been paid. It represents the money available to spend on non-essential items.
Therefore, the correct answer is **Disposable income**.
Here’s a brief explanation of the terms involved:
- **Gross Income**: Total earnings before taxes and other deductions.
- **Disposable Income**: Gross income minus taxes; it is the amount available for spending and saving after the government has taken its share.
- **Discretionary Income**: This is the income remaining after all necessary expenses (including taxes, rents, and food) have been paid. It represents the money available to spend on non-essential items.
Therefore, the correct answer is **Disposable income**.