Household Economic

The video tutorial covers essential topics in household economics, focusing on budgeting, differentiating between essential and non-essential expenses, understanding costs and prices, and the impact of inflation. It emphasizes the importance of savings and thrift for financial security, offering practical tips for managing money wisely. The tutorial also explains how market conditions and government policies influence prices and provides strategies to cope with inflation through investments and cautious spending.

Which of the following is considered an essential expense?

• Luxury car

• Textbooks for courses

• Video games

• Designer jacket

What can cause the price of a product to increase?

• Limited supply and high demand

• High competition

• Increase in supply

• Decrease in demand

How does inflation affect your purchasing power?

• Decreases the value of money

• Has no effect on money value

• Doubles the purchasing power

• Increases the value of money

Which of the following is a strategy to cope with inflation?

• Spending all savings immediately

• Investing in assets that grow in value over time

• Avoiding all investments

• Investing in assets with low returns

What is the primary purpose of savings?

• To set aside money for future needs and emergencies

• To lend money to friends

• To avoid paying taxes

• To spend on luxury items

Which of the following is a good saving habit?

• Spending more than you earn

• Avoiding all forms of entertainment

• Setting a budget and automating savings

• Impulsive spending

What is a benefit of investing wisely?

• Decreases your wealth

• Keeps your money idle

• Multiplies the worth of your money

• Increases your debt