consumer economics chapter 2 review

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what’s it called when you make money on the percentage of the total sales you make?

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Economics

13 Terms

1

what’s it called when you make money on the percentage of the total sales you make?

commission

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2

What’s your biggest wealth-building tool?

income

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3

when you’re creating your monthly budget, what’s the first priority under “Expenses”?

giving

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4

If you approach money with a generous spirit, you’ll be:

more grateful

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5

what will tracking expenses help you do?

stick to a budget, catch errors, and make adjustments

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6

irregular income

income that comes in at different amounts or at different times, or both

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7

commission

earnings based on a percentage of the sales made

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8

cash-flow statement

a record that summarizes all of the income and outgo (spending) over a certain time period

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9

net income

what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay

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10

gross income

the amount you earn before taxes and other payroll deductions

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11

zero-based budget

a cash-flow plan that assigns an expense to every dollar of your income; the goal is for the total income minus the total expenses to equal zero

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12

discretionary expense

expense for things you don’t need

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13

fixed expense

expense that remains the same

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