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ciarans stack

key words on consumer

QuestionAnswer
Expenditure Refers to the amount of money we spend during a particular period of time
Fixed Expenditure Items where cost does not change according to use
Irregular Expenditure Items where the cost does change according to use
Impulse Buying Is buying something on the spur of the moment without thinking if we can afford it
Opportunity Cost Is when we have the choice of buying two items and the item we do not choose is the opportunity cost
Example of opportunity cost I have one euro. I have the choice of buying an apple or a bar of chocolate. I picked the apple so the opportunity cost was the bar of chocolate
Mortgage A loan from the bank to enable a person to buy a house
Budget Is a plan of a households future income and future expenditure
Created by: cfenlon14
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