Smart Shopping Pre-Assessment

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.

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 commission on sales

• An independent consumer education website that reviews and rates technology products

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

• Taxes

• Charitable Giving

• Savings

• All of the above

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

• A brand-name jacket

• Transportation to get to work

• A place to live

• Nutritious food

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