Podcast
Questions and Answers
Describe the concept of zero-based budgeting and list two advantages and two disadvantages of this budgeting method.
Describe the concept of zero-based budgeting and list two advantages and two disadvantages of this budgeting method.
Zero-based budgeting (ZBB) is a budgeting method where every expense must be justified from scratch, starting with a 'zero base' for each budget cycle, rather than basing it on the previous year's budget. Two advantages of ZBB are cost efficiency and resource allocation, while two disadvantages are time consuming and complexity.
What is a balanced budget and how does it differ from a surplus budget and a deficit budget?
What is a balanced budget and how does it differ from a surplus budget and a deficit budget?
A balanced budget occurs when revenues are equal to or greater than total expenses. A surplus budget is when income or revenue exceeds expenditures, while a deficit budget occurs when expenses exceed revenue.
Explain the concept of consumer spending and its significance in the economy.
Explain the concept of consumer spending and its significance in the economy.
Consumer spending is all spending on final goods and services for current personal and household use. It is a key driving force in the economy, and investors, businesses, and policymakers closely follow published statistics and reports on consumer spending to help forecast and plan investment and policy decisions.
What is the value proposition budgeting approach and how does it allocate resources?
What is the value proposition budgeting approach and how does it allocate resources?
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List and define the three types of budget: balance budget, surplus budget, and deficit budget.
List and define the three types of budget: balance budget, surplus budget, and deficit budget.
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What is the primary goal of an investment: to generate income or to consume the good?
What is the primary goal of an investment: to generate income or to consume the good?
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True or false: An investment always involves the outlay of some resource today with the hopes of a greater payoff in the future.
True or false: An investment always involves the outlay of some resource today with the hopes of a greater payoff in the future.
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Is appreciation in the context of investment about a decrease in the value of an asset over time: true or false?
Is appreciation in the context of investment about a decrease in the value of an asset over time: true or false?
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True or false: Investments can only refer to bonds and stocks, excluding other forms of generating future income.
True or false: Investments can only refer to bonds and stocks, excluding other forms of generating future income.
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Is speculation the same as investing: true or false?
Is speculation the same as investing: true or false?
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