Understanding Expenditure and Income

What is impulse buying?

• Buying with a discount

• Buying only necessary items

• Buying after careful planning

• Buying on the spur of the moment

Which of the following is an example of fixed expenditure?

• Petrol

• Cinema

• Mortgage

• Holiday

What does 'false economy' mean?

• Buying an item because it seems cheap but in the long run it is money wasted

• Saving money for future use

• Spending money wisely

• Investing in stocks

What is discretionary expenditure?

• Money spent on essential items

• Money spent on taxes

• Money spent on things you can live without

• Money saved for emergencies

Which of the following is an example of irregular expenditure?

• Salary

• ESB

• Pension

• Rent

What is capital expenditure?

• Spending on things that last a long time

• Spending on entertainment

• Spending on daily needs

• Spending on food

What is a surplus?

• When income is greater than expenditure

• When there is no income

• When income equals expenditure

• When expenditure is greater than income

What is a deficit?

• When income is greater than expenditure

• When expenditure is greater than income

• When income equals expenditure

• When there is no expenditure

What is a grant?

• Money received from the government that you don't have to pay back

• Money received as a salary

• Money received as a bonus

• Money received as a loan

What is a wage?

• Income received from investments

• Income received as a gift

• Income that is paid per hours worked

• Income that is paid regardless of hours worked