Future Smart 2

Which best describes opportunity cost?

• The amount of money you put into savings each 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

Before buying a new computer, you want to do some research to help you select the best model for your needs.  Where should you look for the most objective and unbiased information?

• the most popular computer company's website
• paid advertisements in a technology magazine
• a salesperson at an electronics store who earns commissions
• an independent consumer education website that reviews and rates tech products

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

• taxes
• charitable giving
• savings
• all of these

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

• transportation to get to work
• a place to live
• food
• a brand-name jacket

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 sale

Tags

CCSS.6.RP.A.3B

Which of the following is the best example of a fixed expense?

• rent payment
• credit card payment
• cost of groceries
• cost of going out to eat with friends

Which of the following is a variable expense?

• cost of going out to eat with friends
• rent payment
• car payment
• insurance premium

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
• only fixed and variable expenses

You received  $50 as a gift and chose to spend it on redecorating your room instead of other items.The opportunity cost of this decision is

• the price of the new wallpaper you bought
• the other items you could have purchased with your $50
• the sleep you lost by choosing to redecorate
• the time you could have spent doing other things

Your friend is worried about going over his budget for the month. Which expense would you suggest is NOT a need?

• rent payment
• car insurance
• cable service
• groceries