Chapter 1 1/02/1.03 Quiz

Goods or services that are required for survival

• Needs

• Trade‐off

• Want

• Opportunity cost

The value of the next best alternative

that must be forgone as a result of a decision

• Opportunity cost

• Needs

• Want

• Trade‐off

Giving up one thing for another

• Trade‐off

• Want

• Opportunity cost

• Needs

A fundamental belief or practice about what is desirable, worthwhile, and important to an individual

• Value

• Needs

• Want

• Opportunity cost

The desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival

• Want

• Trade‐off

• Opportunity cost

• Needs

Specific objectives that are accomplished through financial planning

• Financial goals

• Opportunity cost

• Trade‐off

• Goal

Managing money continuously through

life in order to reach your financial goals

• Financial planning

• Trade‐off

• Opportunity cost

• Short‐term goals

Something a person intends to acquire, achieve, or accomplish in the future

• Goal

• Trade‐off

• Financial goals

• Opportunity cost

A goal that will be attained in more than one year

• Long‐term goals

• Financial goals

• Trade‐off

• Short‐term goals

The value of the next best alternative

that must be forgone as a result of a decision

• Opportunity cost

• Trade‐off

• Financial goals

• Financial planning