Question

Ginny Paulson was just promoted to marketing manager for her company. She also gets a big raise with the promotion. Because Ginny's discretionary income will increase, which of the following products/services is most likely to see additional spending? A) furnace repairs B) automobile insurance C) a smart TV D) medical services E) grocery staples

Answer 1

The correct answer is letter "C": a smart TV.

Step-by-step explanation:

Discretionary income is an economic concept that refers to money left over after an individual pays taxes covers living expenses. Discretionary income typically falls and increases following the overall health of the economy. Discretionary income allows people to purchase luxury items, or nonessential goods and services.

Therefore, after her wage rise, Ginny Paulson's discretionary income could contemplate the purchase of a smart TV.