Which of the following is typically considered discretionary spending in a consumer's budget?Multiple choice question.transportationhealth careentertainmentfood
Question
Which of the following is typically considered discretionary spending in a consumer's budget?Multiple choice question.transportationhealth careentertainmentfood
Solution
The answer is "entertainment". Discretionary spending refers to non-essential items that consumers purchase when they have leftover income. These are things that people want to have, but do not need to survive. Entertainment, such as movies, concerts, vacations, and other leisure activities, falls into this category. Transportation, health care, and food are typically considered necessary expenses, not discretionary.
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