_______________ is the amount of income left after paying taxes and making essential purchases.

The correct choice reflects a fundamental concept in personal finance. The term for the amount of income left after paying taxes and making essential purchases is disposable income. This figure represents the funds available to an individual after the necessary economic burdens have been settled, which can then be used for savings, investments, or non-essential expenditures.

Discretionary income, while related, refers specifically to the amount of income that remains after all necessary expenses (essential purchases) have been accounted for, allowing individuals to spend on luxuries or entertainment. Therefore, the correct answer emphasizes that what remains after taxes and essential purchases is disposable income, not discretionary income, as discretionary income builds upon the disposable income by excluding essential costs.