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Income and expenditu
Income and expenditure
Question | Answer |
---|---|
Income | Refers to money or other forms of wealth received by a household |
Regular Income | Is income received on a regular basis such as a weekly wage |
Irregular Income | Is income received now and again |
Regular Income employed person | Wages, child benefit |
Irregular Income employed person | inheritance, overtime |
Regular Income unemployed person | unemployment benefit, child benefit |
Irregular Income unemployed person | lottery win, casual work |
Regular Income retired person | pension |
Irregular Income retired person | win at bingo |
Regular Income student | Grant |
Irregular Income student | presents |
Benefit in kind | non-cash of income |
Overtime | extra hours of work |
Child benefit | payment by government parents of children under 18 |
Grant | A payment made by government to students while studying at college |
Unemployment Benefit | Weekly payment made by government made to unemployed people |
Expenditure | Money we spend during a particular period of time |
Fixed Expenditure | Items that cost doesn't normally change |
Irregular Expenditure | Items that cost does normally change |
Impulse buying | Buying on the spur of the moment without asking ourselves can we afford it |
Opportunity Cost | Is when we have the choice of buying 2 items and the item we choose is the opportunity cost |
Mortgage | A loan from the bank to enable a person to buy a house |
Budget | is a plan of a household's future income and future expenditure for a given period |
Net cash | equal total income + total expenditure |
Unbranded | refers to goods not made by a well known producer |
Budget surplus | refers to when your planned income is greater then your planned expenditure |
Budget Deficit | refers to when your planned income is less then your planned expenditure |
balanced budget | refers to when your planned income is equal to your planned expenditure |
Example of a Opportunity Cost | I have 1 euro. I have the choice of buying a bar of chocolate or a apple. I pick the apple so the bar of chocolate is the opportunity cost. |