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Paul Said:

What do you think of these, and why. Please try to explain the answer to me.?

We Answered:

1. Lisa is a single working mother with one child. The following is a breakdown of her expenses for this month:

Assuming these are Lisa’s only expenditures, calculate her total expenses for the month. (1 point)
$2950
(everything she spends)


2. Assuming these are Lisa’s only expenditures, calculate her discretionary expenditures for the month. (1 point)

$950
d baby-sitting (so she can go clubbing or biking on weekends)
d cell phone: (including overages)
d clubbing (cover charges, drinks, etc.)
d motorcycle payment (recreational use)
d restaurants
d satellite TV


3. Assuming these are Lisa’s only expenditures, calculate her monthly fixed expenses. (1 point)
$1800
f car payment (daily use)
f child care (so she can work)
f rent
f motorcycle payment (recreational use)
f home phone
f satellite TV
f electricity
f natural gas


4. Which of the following may be a discretionary expense that is not included on Lisa’s list? (1 point)

gasoline (weekend motorcycle trips)
This transportation is not work- or child-related. She doesn't have to do it.

5. The following is a breakdown of Lisa’s income for the month:

gross salary $2500
net salary $2000
possible bonus from work $500
child support $800

What is Lisa’s current monthly income? (1 point)

$2800
You cannot count on the bonus. Net is what she takes home and can spend. Add the child support to that.

6. Based on Lisa’s monthly income and the expense report given above, we can say that Lisa is living (1 point)
in the red

$2800 < $2950

7. Which of the following is a realistic strategy that would help Lisa to balance her budget? (1 point)

Switch from satellite TV to basic cable (which is cheaper), or local television via antenna (which is free).

This will save $100 per month.

8. Based on her current spending habits and income, which of the following is true of Lisa’s financial situation? (1 point)

in an average month, she has no money to put into savings, and is going deeper into debt each month

9. Lisa is considering replacing her living room set with a new one. The furniture store is offering a zero down, zero interest financing plan. Which of the following is likely true? (1 point)
all of the above

10. “Living within your means” means: (1 point)

* spending only as much money as you earn every month
* having a comfortable amount of savings left over after fixed expenses and discretionary income

I'm not sure which is true according to definitions given in your class. Your means are what you earn. Certainly the first is true. The second is possibly true.

Florence Said:

Help with Economic Question pt.2?

We Answered:

the time it took you to type all this stuff up would be plenty if you used your brain to think about coming up with the solution.

honestly, all the info is given for you to do simple adding & subtracting.

June Said:

1. Lisa is a single working mother with one child.The following is a breakdown of her expenses for this mont?

We Answered:

~~I already Graduated...do your own Homework Sweetie!~~

Jerry Said:

Motability allowance?

We Answered:

My view is (my wife is disabled and in receipt of the higher Mobility Allowance):

When I was working, my wife needed some transport to go shopping etc., but when we went out together, we had the use of my car. As the total mileage that she would cover was small, we decided to finance her car ourselves and to receive the benefit as cash. The result was that the car lasted 15 years, did only 35000 miles and was worth nothing when we changed it. Had we had a Motability car the only person benefitting would be the Motor trade who would get a 3 year old car with negligible mileage when we changed it.

Now that I'm retired, we are looking to change to a Motability car for the very reasons that you state, you only need to fuel it. This will obviously be ideal for us.

The downside of the Motability scheme is that the vehicle can only be used for the claimant, so if you need to go somewhere yourself, unless it benefits the claimant, you cannot use the car. I can cover that with my bus pass.

At the end of the day, you have to make a decision on your own circumstances and calculate which is the most beneficial.