Chapter 2 - Household Expenditure

Question 1

Expenditure

Answer 1

The amount of money we spend during a particular time period

Question 2

Fixed expenditure

Answer 2

Cost stays the same no matter how often we use it e.g mortgage

Question 3

Irregular expenditure

Answer 3

Cost changes depending on how often we use it e.g groceries

Question 4

Discretionary expenditure

Answer 4

Items we buy after we have paid expenses such as bills ect. Things we don’t need e.g holidays

Question 5

Impulse buying

Answer 5

Buying something on the spur of the moment without thinking of the consequences

Question 6

Opportunity cost

Answer 6

The opportunity cost of buying something is the item we had to do without or the item we had to forego

Question 7

Mortgage

Answer 7

Loan from a bank or building society to help someone buy a house