PF Unit 4 Review

Which of these is not a variable expense?

• The movie tickets you buy for a weekend outing

• The electricity bill you pay every month

• The restaurant meals you have on special occasions

• The car loan payment you make every month

Your monthly gym membership, a new pair of shoes, a dinner at a fancy restaurant, and your internet bill are all examples of…

• Wants

• Needs

• Savings

• Expenses

Which of the following items has the highest unit price?

• A 24 oz box of brand-name cereal for $4.99

• A 30 oz box of generic cereal for $3.93

• A 35 oz box of brand-name cereal for $5.99

• A 45 oz bag of generic cereal for $5.68

Every month, John sits down and plans his budget. He ensures every single dollar is allocated to some expense or saving. What budgeting strategy is John using?

• Expense tracking

• 50/20/30 rule

• Zero-based budgeting

• Cash envelope system

You are trying to save money and reduce your monthly expenses. All of the following are recommended strategies, EXCEPT...

• Cutting down on entertainment expenses by going out less

• Borrowing money from your family every month to cover your bills

• Saving on groceries by cooking at home more often

• Lowering utility costs by being more energy efficient

What is the best strategy for managing variable expenses in your budget?

• Ignore variable expenses as they are insignificant

• Calculate the average of your variable expenses over several months

• Aim to eliminate all variable expenses as they are unnecessary

• Focus on fixed expenses as they are more important

Which statement correctly defines variable expenses in a budget?

• 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 large 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 small impact on your budget

What is generally considered the biggest expenditure for most American families?

• Education

• Healthcare

• Housing

• Groceries

A family is considered to be housing-stressed if their housing expenses exceed what percentage of their income?

• 25% of their income

• 35% of their income

• 45% of their income

• 55% of their income

Which of the following is NOT an advantage of part-time work?

• Flexibility in schedule

• Potential for additional income

• More time for personal pursuits

• Guaranteed full-time salary