Financial Literacy Quizz (Modules 1-3)

Select the answer that best describes opportunity cost:

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

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

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

• d. 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?

• a. The most popular computer company's website

• b. Paid advertisements in a technology magazine

• c. A salesperson at an electronics store who earns commission on sales

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

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

• a. Taxes

• b. Charitable Giving

• c. Savings

• d. All of the above

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

• a. A brand-name jacket

• b. Transportation to get to work

• c. A place to live

• d. Nutritious food

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

• a. Compare prices of two brands

• b. Estimate how much you will need

• c. Determine the total cost of the purchase

• d. Figure out the discount during a sale

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

• a. Warm clothes in the winter

• b. A place to live

• c. A smartphone

• d. Nutritious Food

Select the answer that best describes what an opportunity cost is:

• a. The amount of money you put into savings each year

• b. The trade-off of making one choice and giving up a different choice

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

• d. The benefit you gain by choosing one option versus another

You are going to buy a computer, but first you want to do some research to help you select the best model for your needs. Where should you look for the fairest and most reliable information?

• a. The website of a popular computer company

• b. Advertisements that a computer company puts in a computer magazine

• c. An independent consumer education website that reviews and rates computers

• d. Advice from a salesperson in a computer store who earns commissions on sales

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

• a. All income and expenses

• b. Fixed expenses but not income

• c. Income but not variable expenses

• d. Fixed and variable expenses but not taxes

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

• a. Their monthly cost of eating out at restaurants

• b. Their monthly rent payment

• c. The monthly payment on their car loan

• d. Their monthly payment for health insurance