Financial Decision Making Review

The value of the next best alternative when a decision is made.

• opportunity cost

• value

• scarcity

• choices

Scarcity exists because

• China has the resources we need.

• there aren't enough resources to produce everyone's wants

• everything is too expensive

• the government has control over all our resources

You can earn a higher wage rate by

• building skills that are scarce in the labor market

• working more hours each week

• beginning a job immediately after high school

• working for your family

You had three options for the evening: play football, go bowling, or watch TV. You really wanted to get some exercise. You chose to go bowling. What was your opportunity cost?

• football

• bowling

• TV

• football and TV

Which of the following is likely to have the least influence on an individual's values?

• grade average

• family

• media

• religious affiliations

What would not be an opportunity cost of spending your weekend sleeping?

• getting plenty of sleep

• buying new clothes at the mall

• spending time with your friends

• getting exercise at the gym

Something that you cannot survive without:

• want

• need

• value

• opportunity cost

An example of a want:

• food

• shelter

• water

• A New Gaming Console

Clear, identifiable objectives you plan to accomplish are called

• frugal

• opportunity cost

• goals

• restraint

Planning allows for goals to be

• identified

• enabled

• described

• met