Personal Finance Review

What is an opportunity cost?

• The value of goods and services that are made.

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

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

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

What is an example of an opportunity cost?

• Choosing between pizza and pasta and choosing to eat both.

• Choosing to watch one show over another.

• Having the choice of cookies or cake at a birthday and not choosing either.

• Trading pizza for pasta.

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

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

• Jimmy Carter won many elections and eventually became president.

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

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

What does it mean to allocate something?

• To take out

• To give in

• To give out

• To take up

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

• Force

• Sharing

• Authority

• Majority Rule

Amy ran the fastest and won the three mile long race. She received a gift card from McDonalds. What type of allocation got her the gift card?

• Authority

• Sharing

• Contest

• Majority Rule

Scott needed a pencil for math. Clark needed a glue stick. Clark gave Scott a pencil, and Scott gave Clark a glue stick.”

Which of the following best describes what happened between Scott and Clark?

• They borrowed the items they needed.

• They paid for the items they needed.

• They created the items they needed.

• They bartered for the items they needed.

What is one benefit to using money versus bartering for items?

• Bartering can lead to arguments over time.

• Using money will force people to talk to each other.

• The value of money remains the same over time.

• The value of items can increase in value over time.

What is one benefit of using money in our economy?

• Money helps us barter with each other.

• Money provides us a chance to be neighbors.

• Money lets us know how much items cost.

• Money gives us information on services.

Eduardo 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 goods and services.

• The red pencil is the service he lost.

• The red pencil is the opportunity cost.