Unit 4 MCQ: Budgeting & Systems of Inequalities

Front

Which of these is an example of a fixed expense? Options: The ice cream cone you buy on Wednesdays after school, The gas you fill up your car with every week, The groceries you buy every month, The insurance premiums you pay every month

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The insurance premiums you pay every month

Front

Your apartment rent, tickets to a concert, a pepperoni pizza, and your cell phone bill are all examples of…

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Expenses

Front

Which of the following items has the lowest unit price? A 19 oz box of brand-name cereal for $3.99, A 21.6 oz box of generic cereal for $2.93, A 29.4 oz box of brand-name cereal for $4.99, A 39 oz bag of generic cereal for $4.68

Back

A 39 oz bag of generic cereal for $4.68

Front

Which strategy is Raina using when she allocates all of her income toward expenses or saving, ensuring no dollar is unaccounted for in her budget? Options: Cash envelope system, 50/30/20 budgeting, Zero-based budgeting, Expense management

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Zero-based budgeting

Front

When making your budget, you realize that you will not earn enough money to cover all of your expenses. All of the following are suggested ways of balancing your budget, EXCEPT...

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Borrowing money from your friends every month to make up the difference

Front

Which piece of advice about budgeting for variable expenses is most useful? Options: Aim to reduce your variable expenses to $0 on your budget because they are always “wants”, Track your variable expenses for a few months to find your average monthly costs, Do NOT budget for variable expenses, since they only make 5% of total spending on average, Focus on budgeting for fixed expenses because they are easier to change

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Track your variable expenses for a few months to find your average monthly costs

Front

Which of these statements accurately describes fixed expenses in a budget? Options: They are often hard to change and they usually make a small impact on your budget, They are often easy to change and they usually make a small impact on your budget, They are often hard to change and they usually make a large impact on your budget, They are often easy to change and they usually make a large impact on your budget

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They are often hard to change and they usually make a large impact on your budget

Front

Which of these expenses is typically the largest single expense for American households? Food, Housing, Insurance, Transportation

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Housing

Front

A household is defined as housing-burdened if their housing costs are greater than...

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30% of their income

Front

All of the following are benefits of hourly work, EXCEPT... Opportunities for overtime and holiday pay, Some control over scheduling and work hours, Opportunity to pursue other jobs and interests

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Consistent paycheck