Unit 6: Personal Finance

Patrick was given a choice between a red pencil and a blue pencil. He chose the blue pencil.

What of the following phrases describes the red pencil that he did not choose?

• The red pencil is the benefit.

• The red pencil is the service he lost.

• The red pencil is the opportunity cost.

• The red pencil is the goods and services.

What is an opportunity cost?

• The value of goods and services that are made.

• The value of a decision when something is given up.

• The value of what is given up when a decision is made.

• The value of prices and services that are used by consumers.

Which of the following is an example of an opportunity cost from history?

• Juliette Gordon Low worked hard to start the Girl Scouts.

• Martin Luther King, Jr. gave up his safety to fight for equal rights.

• George Washington Carver helped a lot of farmers improve farming.

• Jimmy Carter won many elections and eventually became president.

Why is it important to think a lot before making a choice?

• Because choices never have costs

• Because choices take a lot of time

• Because choices always have costs

• Because choices work are important

What does it mean to allocate something?

• To give in

• To take up

• To give out

• To take out

A majority of Jalyn’s classmates voted for her to be class president. How were the votes allocated?

• Force

• Lottery

• Majority rule

• First-come, first served

The substitute teacher gave certain students a piece of candy for their good behavior. How did she allocate the candy?

• Majority rule

• Authority

• Lottery

• Force

Maurice’s mom made a cake for his class to celebrate his birthday. Every student was given a piece of cake. What type of allocation did Maurice’s mom use?

• Price

• Contest

• Sharing

• Authority

Which type of allocation most benefits someone with a job and income because they can afford more?

• Price

• Force

• Contests

• Majority rule

Charlene ran the fastest and won the one mile long race. She received a gift card from Chick-fil-A. What type of allocation got her the gift card?

• Lottery

• Sharing

• Contest

• Authority