EVERFI Future Smarts: Smart Shopping

Select the answer that best describes opportunity cost:

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

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

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

• 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?

• The most popular computer company's website

• Paid advertisements in a technology magazine

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

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

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

• taxes

• charitable giving - charities

• savings

• All of the expenses should be included in a typical budget

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

• A brand-name jacket

• Transportation to get to work

• A place to live

• Nutritious food

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

• Compare prices of two brands

• Estimate how much you will need

• Determine the total cost of the purchase

• Figure out the discount during a sale

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

• Warm clothes in the winter

• a place to live

• a smartphone

• nutritional 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 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 service

• groceries