Which formula should you use to calculate the value of savings?

Grace, let's continue with these economics questions.

QUESTION 1
Which alternative is the definition of income?
A. Extra money for borrowing
B. Money saved for later use
C. Payment for labour or for goods and services
D. Expenditure for labour or for goods and services

Income is the money an individual or business receives, typically in exchange for providing labor, goods, or services, or from investments. Option C accurately describes this.

The correct option is C.

QUESTION 2
Which of the following is not an example of someone owning a property?
A. Land
B. Building
C. Debentures
D. Equipment

Land, building, and equipment are all tangible assets that represent ownership of property. Debentures, however, are a type of debt instrument, essentially a loan made to a company, and do not represent ownership of physical property.

The correct option is C.

QUESTION 3
What are the two parts to a budget?
A. Making the income and spending the income
B. Making the income and planning the spending
C. Planning for the income and planning how to use it
D. Planning activities to make the income and spend it

A budget is a financial plan that involves estimating expected income and planning how that income will be allocated or spent. Therefore, the two main parts are planning for the income and planning how to use that income (expenditure).

The correct option is C.

QUESTION 4
Which formula should you use to calculate the value of savings?
A. Income = Savings + Expenditure
B. Savings = Income + Expenditure
C. Income = Savings - Expenditure
D. Savings = Income - Expenditure

Savings are the portion of income that is not spent on consumption or expenses. To calculate savings, you subtract total expenditure from total income.

The correct option is D.