Income And Expenditure

Question 1

What is income?

Answer 1

Income is money and or something of value that you receive. It may be earned through employment or unearned through state benefit

Question 2

What is regular income?

Answer 2

Is income that you are certain you will receive and is usually received at agreed intervals

Question 3

What is irregular income?

Answer 3

Is income that you are not certain that you will receive

Question 4

What is benefit in kind?

Answer 4

Non cash forms on income are called benefit in kind

E.g. unemployed person might get a medical card
E.g. aer lingus receiving one free flight each year

Question 5

What is expenditure?

Answer 5

Refers to way People choose to spend their income in order to satisfy various needs and wants

Question 6

What is fixed expenditure?

Answer 6

Is expenditure on important items that involve some amount of money being spent on a regular basis

Rent
Car tax

Question 7

What is irregular expenditure?

Answer 7

Are items of expenditure that occur on a regular basis but amounts tend to vary

Groceries
Petrol

Question 8

What is discretionary expenditure?

Answer 8

Is spending on non essential items that we choose to buy if we have money left over

Holidays
Gifts

Question 9

What is current expenditure?

Answer 9

Is continuous and regular

Bills
Rent

Question 10

What is capital expenditure?

Answer 10

Non regular expenditure and usually isn’t repeated for a long time

Laptop
New car

Question 11

What is opportunity cost?

Answer 11

The item not chosen is the opportunity cost

Question 12

What is impulse buying?

Answer 12

Buying on the spur of the moment

Question 13

What is false economy?

Answer 13

Buying somehting when its cheap even though you dont need it