Which Is the BEST Example of a Fixed Expense

question 20

Multiple Choice

Which is the BEST example of a fixed expense?

• A) monthly budget for rent
• B) yearly budget for food expenses
• C) monthly electric bill
• D) weekly cost for ride-sharing service

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Definitions:

Utilitarian Needs

Needs motivating the consumer to purchase something practical and functional.

Cycle

A sequence of events or processes that recur regularly, returning to the starting point and often leading to predictable outcomes.

Expectancy Theory

A theory that explains the behavioral process of why people choose one behavioral option over others, suggesting that individuals are motivated by an expected outcome.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.