What Statement Made by a Parent Indicates an Understanding About

question 17

Multiple Choice

What statement made by a parent indicates an understanding about helping a 13-year-old manage his allowance?

• A) "I set amounts he can earn for particular chores."
• B) "I give him a certain amount of money for each day."
• C) "I put money into his bank account each month."
• D) "I told him to ask me when he needs money."

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Definitions:

Interest Rate

The percentage charged on a sum of money borrowed or earned on deposited funds over a period of time.

Utility Function

A representation in economics that shows the relationship between the utility (satisfaction) individuals receive from consuming goods and services and different consumption bundles.

Consumption

The action of using goods and services to satisfy needs or desires.

Income

Receipts from labor or investments, typically disbursed at regular intervals.