Chapter 2~Household Expenditure

Question 1

Fixed expenditure?

Answer 1

Money spent on a regular basis, the amount of which does not depend on how often we use the item
E.g ~ mortgage/rent

Question 2

Expenditure?

Answer 2

The amount of money we spend during a particular period

Question 3

Irregular expenditure?

Answer 3

Money spent on a irregular basis, the amount of which does vary and depends on the amount of the item we use
E.g ~ electricity bill

Question 4

Discretionary expenditure?

Answer 4

Money spent on items we should only buy if we have money left over after we have set aside enough money to pay all our important bills
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 item we had to do without or the opportunity to forget when we choose to buy something
E.g we have €20, there is a red dress costing €20 and a blue dress costing €20, we buy the blue dress, the red dress is the opportunity cost

Question 7

Financial cost?

Answer 7

Th price one pays for a good or service

Question 8

Mortgage?

Answer 8

A loan from a bank or building society to help someone buy a house