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WorksheetsForm 4 - Ch. 17 - Households
Total questions: 15
Worksheet time: 7mins
Which one of these is not a type of income?
Interest on savings
Rent paid to you for a property you own
Salary
Loan repayments
What type of tax is income tax?
An indirect tax
A direct tax
A value added tax
A service tax
None of these
What is disposable income?
How much you are taxed by the government
Money you do not spend
The income you have left to spend after deductions like tax and pensions
Money you save for a 'rainy day'
Which of these best describes how most low earners save, spend and borrow?
Save little, spend on necessities, borrow for capital expenditure
Save as much as they can, spend on holidays and cars, borrow for luxuries
Save little, spend on household items, borrow nothing
Save a lot, spend little, borrow a lot
Which of these is current expenditure?
Cars
Furniture
Haircuts
Washing machine
Which of these is capital expenditure?
Food
Clothes
Cinema
Laptop
What is conspicuous consumption?
Where you buy things secretly
Where you buy things to impress others / improve your social status
Where you save money wherever possible
Where you spend as much money as you can
When your liabilities are more than your assets you experience what?
Positive wealth effects
Negative equity
Inflation
Disposable income
When interest rates fall, which of these happens?
Spending increases, savings decrease, borrowing increases
Spending decreases, savings decrease, borrowing decreases
Spending increases, savings decrease, borrowing decreases
Spending decreases, savings increase, borrowing increases
In a 'booming' economy, which of these DOES NOT happen?
High consumer confidence
Greater spending levels on luxury goods
Lower savings levels
Higher spending by businesses on capital goods
Less borrowing
What is extremely high inflation known as?
Superinflation
Hyperinflation
Megainflation
Massinflation
If interest rates are high this affects someone's purchasing power.
True
False
Which of these has the least affect on levels of borrowing?
Interest rates
Confidence in the economy
Government bonds
Wealth
Which of these will encourage people to save more and spend less?
High inflation
Low interest rates
Low confidence in the economy
Higher disposable income
Which of these factors affect a household's spending, saving and borrowing?
Age
Inflation
Size of household
Interest rates
All of these
