3.4 Spending, Saving And Borrowing Flashcards
0
Q
What is spending?
A
It enables people to buy goods and services to satisfy their needs and wants.
1
Q
What is disposable income?
A
The amount of money left for spending and saving after paying direct taxes.
2
Q
What is saving?
A
Delaying consumption
3
Q
What is borrowing?
A
Enables a person to increase their current level of spending.
4
Q
Why does the amount of income we earn tend to rise as we get older?
A
1) employees earn more in wages as they learn more skills and become more experienced.
2) we tend to save more as we grow older and earn more interest on out savings.
3) entrepreneurs become more experienced in business and can earn more profit.
5
Q
Factors that effect saving and spending?
A
Age, taste and family circumstances.
