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

• warm clothes in winter

• a place to live

• a smartphone

• nutritious food

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

• the amount of money you put into savings each year

• the trade-off of making one choice and giving up a different choice

• the amount of money a business makes every year from sales

• 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?

• the website of a popular computer company

• advertisements that a computer company puts in a computer magazine

• an independent consumer education website that reviews and rates computers

• 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?

• all income and expenses

• fixed expenses but not income

• income but not variable expenses

• fixed and variable expenses but not taxes

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

• their monthly cost of eating out at restaurants

• their monthly rent payment

• the monthly payment on their car loan

• their monthly payment for health insurance

Your friend's parents are worried about going over their budget for the month. Which expense would you suggest is NOT a need?

• rent payment

• car insurance

• cable/tv service

• groceries

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

• compare the prices of the two brands

• estimate how much of the item you will need

• determine which of the two brands is higher quality

• figure out the discount during a sale on the two items

You received $50 as a birthday gift and chose to spend it on new wallpaper for your room. The opportunity cost of this decision is:

• the price of the wallpaper you bought

• the other items you could have purchased with your $50

• the time you could have spent doing other things

• all of the above

Which of the following is NOT true of a budget?

• budgets help you plan how to spend money you earn or receive

• once a budget is set, it should not be revisited

• a budget can include charitable giving

• budgets include both income and expenses

Which of the following is NOT a successful budgeting strategy?

• keep some extra money in your budget for emergencies

• pay with a credit card if you have a hard time sticking to a budget

• think about which items are you most important needs

• revisit your budget regularly and make adjustments