Economics · 30 min
A budget with room to spare
Plan spending and distinguish wishes from available resources.

01
Take a closer look
A budget compares available resources with planned expenses. A remaining amount can serve as a reserve. This activity uses abstract units rather than real market prices.
02
Now try it
- A fictional group has 100 units. Materials cost 45, refreshments 30 and transport 15. Calculate the reserve.
- Transport costs rise to 25. Compare two ways to keep the plan within budget.
03
Think it through
How large is the reserve in the original plan?
See a suggested answer
100 − 45 − 30 − 15 = 10 units. With the higher transport cost and no other change, no reserve remains.