The Martins' Household Income Is $123,000 Per Year

question 49

Multiple Choice

The Martins' household income is $123,000 per year. However, this family estimates that they have $45,000 available to spend on nonessentials such as vacations and entertainment. The $45,000 represents the Martins' _____.

• A) objective discretionary income (ODI)
• B) adjusted gross income (AGI)
• C) adjusted discretionary income (ADI)
• D) subjective discretionary income (SDI)
• E) subjective gross income (SGI)

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Definitions:

Piaget's Theory

A theory of cognitive development that describes how children's intellectual abilities evolve through four stages from infancy to adolescence.

Vygotsky's Theory

A theory that emphasizes the fundamental role of social interaction in the development of cognition, suggesting that community and culture play central roles in the process of making meaning.

Cognitive Development

The process by which a person's ability to think, reason, and understand the world around them evolves over time.

Preoperational Stage

A developmental phase in Piagetian theory, where children from about 2 to 7 years old develop memory and imagination, but do not yet think logically.