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Disposable income is the money a consumer has left after paying taxes to use for necesities such as food housing, clothing, and transportation. Discretionary income is the money that remains after paying for taxes and necessities and is used for luxury items.

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Q: What is the difference between a consumer's disposable and discretionary income?
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What is the difference between disposable income and discretionary income?

Formulas are: Disposable income = consumption expenditure + savings - support of others; Discretionary income = Gross income - taxes - necessities. Although denotatively wrong, disposable income is commonly used to denote discretionary income.


What is the between disposable income and discretionary income?

Formulas are: Disposable income = consumption expenditure + savings - support of others; Discretionary income = Gross income - taxes - necessities. Although denotatively wrong, disposable income is commonly used to denote discretionary income.


What is the different between disposable income and discretionary income?

Formulas are: Disposable income = consumption expenditure + savings - support of others; Discretionary income = Gross income - taxes - necessities. Although denotatively wrong, disposable income is commonly used to denote discretionary income.


What is the difference between personal income and disposable income?

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A committed cost is going to occur whether or not you have any output like rent.A discretionary cost is a variable cost like that of raw material.


What is the difference between automatic and discretionary fiscal policy?

Discretionary fiscal policy requires deliberate government action. Automatic fiscal policy occurs automatically without (additional) congressional action.


What is the difference between discretionary and non discretionary spending?

Discretionary fiscal policies are those that are enacted in response to a need, for example, a tax cut. Non-discretionary fiscal policies are those that happen regardless of conditions or need, for example, the welfare system.


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