HST 413 Unit 7.11 Test Study Guide

Why do people reach different decisions using cost-benefit analysis even under the same conditions?

• All values are ultimately monetary.

• Investment payoffs vary as time goes forward.

• Costs and benefits are both subjective.

• Different people live under different governments.

Which of these statements describes the costs and benefits of taking a college loan?

• College loans help students with academic and athletic skills overcome financial hardships.

• College loans require students to work while studying but they cost less than conventional loans.

• College loans reduce tuition payments but increase total educational costs because of interest payments.

• College loans help increase future earning power but result in a long-term commitment to monthly payments.

Which statement describes one of the opportunity costs of attending college?

• Specializing in one area of study limits a person's possible jobs.

• The high cost of tuition requires most students to take college loans.

• A college education is no guarantee of getting a high-paying job later in life.

• Time spent on schoolwork takes away from the chance to earn money at a job.

What kind of contract outlines the obligations of a landlord and his or her renters?

• bond

• regulation

• mortgage

• lease

Which situation would most likely use renter's insurance?

• Personal possessions are stolen from an apartment.

• A person loses their job because of an injury or illness.

• A person wants to choose their own doctor or hospital.

• A person causes a car accident that injures other people.

Why do some auto insurance customers want medical coverage for their policies?

• to prevent uninsured motorists from suing them for injuries they cause

• to help find the best hospital to care for people they injured in a car accident

• to avoid having to pay for hospital bills resulting from an accident they cause

• to keep from having to make a co-pay in case of a minor injury after an accident

When do people have to make a copay?

• when their possessions are destroyed in a fire

• when they go to a doctor because of an illness

• when they cause a car accident that injures someone else

• when they take a low-paying job while recovering from an injury

What do banks pay with some of the profits they make by loaning out the money in their customers' savings accounts?

• interest on savings accounts

• a dividend to the Federal Reserve

• property taxes to the state government

• a tariff to the International Monetary Fund

What makes a savings account a better investment than a checking account?

• A savings account earns interest.

• A savings account allows for a tax deduction.

• A savings account is like part ownership in a bank.

• A savings account can be accessed with a debit card.

With which type of account is a mortgage payment associated?

• checking account

• credit card

• health insurance

• home loan