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Budget

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

All of these are "NEEDS" EXCEPT:

a)

BUS FARE

b)

MOVIE TICKETS

c)

RENT

d)

GROCERIES

2.

What is opportunity cost?

a)

the tax that is paid on income

b)

the fees that are paid for education

c)

the value of an alternative you give up

d)

the interest paid on a long-term investment

3.

Rent and car insurance payments are both which type of expenses?

a)

fixed costs that are needs

b)

fixed costs that are wants

c)

variable costs that are needs

d)

variable costs that are wants

4.

A consumer is someone who

a)

buys something

b)

makes something

c)

offers a service

d)

sells a product

5.

Which word of phrase should be at the top of the left column of this budget?

a)

Cash flow

b)

Fixed costs

c)

Income

d)

Savings

6.

Which statement about variable expenses is true?

a)

Variable expenses include only large costly items.

b)

Variable expenses should not be included in the budget.

c)

Variable expenses include wants but not needs.

d)

Variable expenses are easier to cut than fixed expenses.

7.

What is the main purpose of a budget?

a)

to keep track of cash flow

b)

to find new sources of income

c)

to differentiate between needs and wants

d)

to determine the amount of taxes to be paid

8.

Lola is saving for a vacation. Based on the budget numbers here, how much can she put in her vacation account this month?

a)

$32.00

b)

$48.00

c)

$112.00

d)

$128.00

9.

Cory's budget shows a problem. His weekly expenses average $10 more than his earnings. Coryworks 5 days a week and every day on his way to work, he spends $2.50 on hot chocolate. Will cutting out the hot chocolate help Ellis balance his budget?

a)

Yes, and he will have some money left ove

b)

Yes, the amount he saves will balance his budget exactly.

c)

No, Ellis will have to find other places to cut.

10.

Gabby wants to buy a new dishwasher that costs $500. She has already saved $100. She earns $1,200 a month and her total monthly expenses come to $1,000. Gabby is going to put all of her extra money each month into her savings account for the dishwasher. Assuming her expenses stay the same, how long will it take Gabby to save enough money for the dishwasher?

a)

three months

b)

Two monthes

c)

five months

d)

one month