When Estimating Expenses for a Budget

question 82

Multiple Choice

When estimating expenses for a budget,

• A)last month's and last year's expenses are not a good starting point.
• B)many of the same expenses do not occur each month.
• C)large unusual expenses such as car or hospital bills should not be included.
• D)estimating your future assets is a good starting point.

---

Definitions:

Budget Constraint

A concept in economics that represents all the combinations of goods and services a consumer can afford given their income level and the prices of goods.

Good X

Good X typically represents a hypothetical product used in economic models and problems to explain various concepts.

Good Y

Refers to a specific product or commodity in an economic model or discussion, distinct from others by its characteristics or use case.

Budget Constraint

The limitations on the consumption patterns of individuals or households, given their income and the prices of goods and services.