FutureSmart Module 2 Smart Shopping

Select the answer that best describes opportunity cost:

• The amount of money you put into savings every year.

• What you give up as a result of choosing one option versus another; a trade-off.

• The amount of money a business makes every year from sales

• What you gain as a result of choosing one option versus another; a benefit.

Which of the following expenses should be included in a typical budget?

• Taxes

• Charitable Giving

• Savings

• All of the above.

If you know the unit price of an item, you are better able to:

• Compare prices of two brands

• Estimate how much you will need

• Determine the total cost of the purchase

• Figure out the discount during a sales

Which of the following would be considered a want rather than a need for most people?

• Warm clothes in the winter

• a place to live

• a smartphone

• Nutritious Food

You are creating a budget for your new business. What should you include?

• All income and expenses

• Fixed expenses but not income

• Income but not variable expenses

• Fixed and variable expenses but not taxes

Which of the following is a variable expense for many adults?

• Their monthly cost of eating out at a restaurants.

• Their monthly rent payment

• Their monthly payment on their car loan

• Their monthly payment for health insurance

Your friend's parents are worried about going over their budget for the month. Which expense would you suggest is NOT a need?

• Rent payment

• Car insurance

• Cable service

• Groceries

You received $50 as a birthday gift and chose to spend it on new wallpaper for your room. The opportunity cost of this decision is:

• The price of the wallpaper you bought

• The other items you could have purchased with your $50

• The time you could have spend doing other things

• All of the above

Which of the following is NOT true of a budget?

• Budgets help you plan how to spend money you earn or receive

• Once a budget is set, it should be revisited

• A budget can include charitable giving

• Budgets include both income and expenses

Which of the following is NOT a successful budgeting strategy?

• Keep some extra money in your budget for emergencies

• Think about which items are your most important needs

• Pay with a credit card if you have a hard time sticking to a budget

• Revisit your budget regularly and make adjustments