- 1. to set aside money for a later use.
A) Save
B) Spend
C) Budget
D) Income
- 2. a sum of money that people and businesses have to pay the government in return for public services.
A) Savings
B) Tax
C) Credit
D) Interest
- 3. to follow and note the course or progress of.
A) Total
B) Calculate
C) Sum
D) Track
- 4. 1A. Part of budgeting is tracking your income and comparing it to your _____.
A) Rent
B) Expenses
C) Checking
D) Savings
- 5. All of the following may be considered needs except
A) Movie Ticket
B) Bus Fare
C) Rent
D) Groceries
- 6. What is opportunity cost?
A) the value of an alternative you give up
B) the tax that is paid on income
C) the fees that are paid for education
D) the interest paid on a long-term investment
- 7. Rent and car insurance payments are both which type of expenses?
A) fixed costs that are needs
B) variable costs that are needs
C) fixed costs that are wants
D) variable costs that are wants
- 8. A consumer is someone who
A) buys something
B) offers a service
C) makes something
D) sells a product
- 9. Which statement about variable expenses is true?
A) Variable expenses include wants but not needs.
B) Variable expenses include only large costly items.
C) Variable expenses are easier to cut than fixed expenses.
D) Variable expenses should not be included in the budget.
- 10. What is the main purpose of a budget?
A) to differentiate between needs and wants
B) to find new sources of income
C) to determine the amount of taxes to be paid
D) to keep track of cash flow
- 11. Lola is saving for a vacation. She earns $960 from work and an extra $48 from child care. Her monthly expenses are $880. How much can she save this month?
A) $32
B) $128
C) $112
D) $48
- 12. Ellis's budget shows a problem. His weekly expenses average $10 more than his earnings. Ellis works 5 days a week and every day on his way to work, he spends $2.50 on hot chocolate. Will cutting out the hot chocolate help Ellis balance his budget?
A) Yes, and he will have some money left over.
B) Yes, the amount he saves will balance his budget exactly.
C) No, Ellis will have to find other places to cut.
- 13. Erica wants to buy a new dishwasher that costs $500. She has already saved $100. She earns $1,200 a month and her total monthly expenses come to $1,000. Erica is going to put all of her extra money each month into her savings account for the dishwasher. Assuming her expenses stay the same, how long will it take Erica to save enough money for the dishwasher?
A) two months
B) one month
C) three months
D) five months
- 14. a plan that details how money will be earned and spent.
A) Salary
B) Track
C) Bill
D) Budget
- 15. the money needed to pay for something.
A) Income
B) Spend
C) Expense
D) Purchase
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