Personal Decision Making

Which of the following are basic needs

• Food

• Water

• Shelter

• Medical Care

• A car

Which of the following is a want

• TV

• Cell Phone

• Education

• Shelter

What are examples of values

• Family

• Wealth

• Religion

• Education

What is discretionary income

• The money you make at your job

• The money you have left over after paying expenses

• The money you spend on necessities

Collective Values are ideals and values important to society

• True

• False

Who generally has the greatest impact on our values

• Society

• Family

• Friends

A sunk cost is

• getting something in return for giving up something else

• an expense that occurred in the past that cannot be recovered

• buying a used laptop instead of a new laptop

Marginalism says that if the added benefit will exceed the added cost, you should fix the original

• True

• False

A trade off is an example of an opportunity cost

• True

• False

Which of the following is NOT a step in the decision making process

• Define the problem or goal

• Obtain Accurate Information

• Consider Sunk Costs

• Compare Choices

• Make a Decision