Chapter 1 buying and working
1.1 Budget
-Pocket money= Money which you get from your parents every week or
month without doing anything for it.
-Budget= Overview of all income and expenditure for a coming period.
-Balanced budget= When all incomes are equal to the expenditures.
-Coverting amounts:
>From weekly to monthly, *52/12
>From monthly to weekly, *12/52
>From quaterly to monthly, /3
1.2 What do you do with your pocket money?
-Budget line: A graphical representation of all possible combinations of
two goods that a consumer can purchase with his/her budget.
-Learn how to draw a budget line by looking back in your book
1.3 Households and their finances
-Household expenses= Everyday expenses, like food, presents, pocket
money etc.
-Fixed charges= Recurring expenses, like rent, energy, insurance etc.
-Reserve expenses= Setting money aside for bigger expenses, like a new
car etc.
-Saving= The rest of the income, you can choose what to spend it on.
1.4 The government's finances
Government incomes
-Direct taxes= Tax on income and profits (corporation tax).
-Indirect taxes= Taxes on goods and services.
>VAT: Value added tax.
1.1 Budget
-Pocket money= Money which you get from your parents every week or
month without doing anything for it.
-Budget= Overview of all income and expenditure for a coming period.
-Balanced budget= When all incomes are equal to the expenditures.
-Coverting amounts:
>From weekly to monthly, *52/12
>From monthly to weekly, *12/52
>From quaterly to monthly, /3
1.2 What do you do with your pocket money?
-Budget line: A graphical representation of all possible combinations of
two goods that a consumer can purchase with his/her budget.
-Learn how to draw a budget line by looking back in your book
1.3 Households and their finances
-Household expenses= Everyday expenses, like food, presents, pocket
money etc.
-Fixed charges= Recurring expenses, like rent, energy, insurance etc.
-Reserve expenses= Setting money aside for bigger expenses, like a new
car etc.
-Saving= The rest of the income, you can choose what to spend it on.
1.4 The government's finances
Government incomes
-Direct taxes= Tax on income and profits (corporation tax).
-Indirect taxes= Taxes on goods and services.
>VAT: Value added tax.
