Jason and Lucy Prepared a Household Budget in an Attempt

question 15

Multiple Choice

Jason and Lucy prepared a household budget in an attempt to manage their money better. They prepared the following list: Monthly income (after taxes) = $4,500; Monthly expenses (necessities) , which include rent, $550; auto loan, $250; student loan, $200; savings, $500; food, $200 = $1,700; Amount left over = $2,800 (income less necessary expenses) . The $2,800 they had left over is their

• A)gross income.
• B)personal income.
• C)disposable income.
• D)discretionary income.
• E)profit.

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Definitions:

Tested

The process of examining or evaluating something to determine its characteristics, quality, or performance.

Set Up

The process or action of making something operational or ready for use, especially in a context of preparation or installation.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.

Peanuts

Peanuts are a type of legume or groundnut that is cultivated for its edible seeds, widely consumed globally as a snack, in culinary dishes, or processed into oil and other food products.