Final Review - Units 1-3

A lawnmower that normally sells for $500 is on sale for 25% off. How much is the lawnmower after the discount?

• $375

• $125

• $12,500

• $100

If sales tax is 6%, how much sales tax must you pay on something that costs $100?

• $600

• $94

• $6

• $60

Which of the following best describes monetary value?

• An item’s worth in comparison to something else

• The price at which an item is bought or sold for

• The value an individual gives an item for personal reasons

• The extent to which a person wants or needs an item

Which of the following is not a major factor when determining a person’s standard of living?

• Wealth

• Comfort

• Necessities

• Age

The budgeting process includes three important aspects. Which of the following describes the most important aspect?

• Categorizing spending needs because they must be a top priority

• Categorizing spending wants because they result in dangerous spending

• Assigning limits to categories because budgets are built on limitations

• Committing to the limits and categories decided on

Which of the following is a common non-monthly expense that could be included in a monthly budget?

• Gasoline

• Electric bill

• Rent

• Oil Changes

Which of the following is not true for the envelope budget?

• It utilizes the psychological advantages of paying with cash.

• Most, if not all, discretionary spending is done with cash.

• If a person uses a credit or debit card, he will most likely spend less money than if he used cash.

• Using cash instead of a card naturally limits spending.

Lane is considering a career as a public relations specialist in which he would make about $38,000 a year. But he realizes it will cost him about $52,000 to get the degree he needs. If Lane decides to move forward, what will his ROI be after the first year in his career?

• -27%

• 27%

• -73%

• 73%

Which of the following would most likely not be a type of college-based scholarship?

• An academic scholarship awarded for a high GPA

• A tuition waiver granted for declaring a psychology major

• An athletic scholarship to play volleyball

• A scholarship given by the National Honors Society

Armani was awarded approximately $75,000 in scholarships. He also received $5,000 in Pell Grant money. Assuming his tuition and fees totaled around $26,000, what amount of money will Armani receive as a return from his unused scholarships?

• $75,000

• $70,000

• $54,000

• $49,000