Personal Finance Review pt 1

What is opportunity cost?

• the value of the next best option that is not selected when a choice is made.

• there is not enough of it.

• things people make to earn money.

• actions people do to earn money.

Andrea has planned a trip to the beach for her family on Labor Day. Her daughter has been invited to the mountains by a friend. Her daughter decides to go to the beach. What is her opportunity cost?

• a trip to the beach

• a trip to the mountains

The economic problem is that

• resources are limited and wants are limited.

• resources are unlimited and wants are limited.

• resources are limited and wants are unlimited.

• resources are unlimited and wants are unlimited.

Limited Resources + Unlimited Wants =

• Scarcity

• Productivity

• Opportunity Cost

• Efficiency

Fixed expenses

• Is a spending plan for managing your money

• Income from all possible sources

• Expenses that equal all the fixed & variable expenses.

• Expenses that remain the ssame month after month EX: mortgages, rent, car payments insurances

Variable expenses

• Necessary things or items that are paid monthly

• Expenses that increase/decrease monthly/yearly EX: Utilities, food, entertainment, internet, TV provider

• Is a spending plan for managing your money that includes income and expenses.

• Expenses that remain the same over a period of time.

Gross Income

• Hard copy of revenue

• Income from all sources before deductions such as retirement, health insurance, federal, state, and local taxes, etc

• all expenses for the month

• income left over after taxes

Net pay

• Revenue before deductions

• State and local taxes

• Income after all deductions have been paid

• I don't know i just want pizza and wings

A formal request made by the insurance policyholder to the insurance company for payment or services covered by the insurance policy.

• Claim

• Accident

• Premium

• Coverage

An type of car insurance policy that provides complete protection.

• Deductible

• Comprehensive

• Liability

• Total