What Expenses Are NOT Included in a Basic Budget for a Household

question 36

Multiple Choice

What expenses are NOT included in a basic budget for a household with one full-time minimum wage worker (which shows that all basic expenses are not affordable at the minimum wage) ?

• A) Housing, utilities, transportation, food
• B) Health insurance, time off work, any recreational activities, or gifts
• C) Number of children in a household, childcare
• D) All of the above

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Definitions:

NPV

Net Present Value, a financial metric that evaluates the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Operating Lease

An agreement permitting the utilization of an asset without transferring ownership rights to the user.

Operating Leases

Lease agreements that allow for the use of an asset but do not convey rights of ownership, typically involving shorter-term leases with lower payments.

Financial Leases

Long-term leases that are effectively a method of borrowing to acquire equipment or vehicles, with lessee payments covering the asset's full value plus interest over the lease term.