Unit 3.2 Household

Front

Household

Back

a group of people who share the same living accommodation, who pool at least some of their income and who consume certain goods and services such as housing and food collectively.

Front

Income

Back

the reward for the services provided by a factor production, including labour.

Front

Spending

Back

the use of money to purchase goods and services

Front

Saving

Back

that part of someone's income which is not spent on consumption

Front

Borrowing

Back

the act of taking out a loan with the requirement to pay the money back over an agreed period of time, very often with interest

Front

Rate of inflation

Back

the persistent rise in the general price level over time

Front

Real income

Back

income taking the effects of inflation into account (the purchasing power of income)

Front

Direct tax

Back

a tax on income or wealth

Front

Indirect tax

Back

a tax on spending that is initially charged to the producer, but may then be passed on to consumers through an increase in price

Front

Disposable income

Back

the income available to spend and save after direct taxes have been deducted and any state benefits added