Economic Decisions

Which of the following BEST describes income?

• Money given to a charity that helps others.

• Money received for completing a chore or task.

• Money received from a parent to pay for lunch.

• Money spent on new clothes and shoes for school.

Which of the following should Alex consider when planning his monthly personal budget?

• How much tv he will watch this week.

• How many books he will read at school.

• How much ice cream he will buy at school.

• How many pencils he will trade with another student.

What is the difference between income and an expenditure?

• An income is money that is received; an expenditure is money that is spent.

• An expenditure is money that is saved; an income is money that is spent.

• An expenditure is money that is earned; an income is money that is received.

• An income is money that is given to another person; an expenditure is money that is received by another person.

What is the purpose of a budget?

• To help people improve their education and skills

• To help people determine how to train for their jobs

• To help people live healthier lives and exercise more

• To help people plan their spending and saving decisions

Which of the following is the MOST financially responsible decision?

• Stacy was paid $25 for helping her neighbor in the yard. She spent $20 on a T-shirt and $5 on ice cream at the mall.

• Katrina gave away her new bike helmet for free when she could have sold it for $75.

• Tommy got $50 for his birthday from his grandma. He spent $75 on XBox games.

• Jamal earned $100 lifeguarding. He spent $5 on lunch and saved the other $95.

Which of the following is an expenditure?

• Buying an ice cream at lunch

• Selling an old game to a friend

• Getting paid for helping your neighbor

• Receiving an allowance from your parents

Jamar wants to be the richest person in the world. Which of the following should he include in his personal budget now to make this happen?

• How he plans to spend money on himself and others

• How he plans to save money over a long period of time

• How he plans to increase his expenditures this coming year

• How he plans to spend all of the money he earns on other people

Which of the following is an example of income?

• trading supplies with a friend

• earning money for working a job

• buying an ice cream at lunch today

• charging a lunch you will pay for tomorrow

I have a really big social studies project due tomorrow. But, my friends are playing soccer tonight near my house. I will play with them instead of working on my project. Which of the following BEST describes the social studies project in this scenario?

• The project is an income.

• The project is an expenditure.

• The project is an opportunity cost.

• The project is an example of savings.

What does it mean to have a balanced budget?

• Income is the same or more than expenditures.

• Expenditures are the same throughout the budget.

• Income that is earned is less than expenditures.

• Donations to charity are included in the expenditures.