1st yr Chap 2 Expenditure Test

This is paid to the Government  

• Fees
• Wages
• Tax
• Salary

What is the correct business definition for Expenditure?

• The total money received by an individual, household or company on a regular basis, for work or through investments

• an estimate of spending for a set period of time which allows you to plan how much you can spend in that time.

• The total amount of money spent by an individual or household

• the money someone has not spent

What are savings?

• The total amount of money spent in a particular period of time.

• A sum of money that is owed to someone else.

• An amount of money that has been leant to someone over a particular period of time to allow them to purchase a product.

• the money someone has not spent, usually through a financial institution

What is debt?

• An amount of money that has been leant to someone over a particular period of time to allow them to purchase a product.

• A sum of money that is owed to someone else.

• The total amount of money spent in a particular period of time.

• the money someone has not spent, usually through a bank or official scheme.

The purpose of taxes is to

• improve roads

• support government

• pay retirement benefits

• all of the above

Which one of these definitions best describes 'Opportunity Cost'?

• The item that we did not buy because we chose another item

• The opportunity that will cost you money

• The cost for the opportunity to buy anything you want

What is a want?

• A person

• Purple

• Something you would like to have but don't need to live

• Something you need to live

A student decides to buy a ticket for a concert instead of buying a new shirt. What is the opportunity cost of buying the ticket?

• the concert

• the price of the ticket to the concert

• the shirt

• the time spent purchasing the ticket

Roger goes to Starbucks, he has €5. He can buy a latté for €4 or a hot chocolate for €3. He chooses the hot chocolate. What was the financial cost?

• €3

• hot chocolate

• €5

• latté

In which month is the Duffy family's planned expenditure the greatest?

• January

• February

• March

• April