Personal Finance Review

What is an opportunity cost?

• The cost of a good or service

• The amount of money you pay to play a sport

• The thing you give up when you choose something else

Why do we have to make choices when spending money?

• We have too much money to spend

• We cannot have everything we want

• We do not want to miss out on anything

Aimee chose a red pencil instead of a blue pencil. Which pencil is the opportunity cost?

• Both pencils

• The red pencil

• The blue pencil

Why is it important to think before making a choice?

• Because choices never have costs

• Because choices take a lot of time

• Because choices always have a cost

What does it mean to allocate something?

• To give up

• To take in

• To give out

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

• Lottery

• Majority rule

• First-come, first served

The substitute teacher gave certain students a piece of candy for their good behavior. How did she allocate the candy?

• Majority rule

• Authority

• Lottery

Frank's mom made a cake for his class to celebrate his birthday. Every student was given a piece of cake. What type of allocation did Frank's mom use?

• Price

• Contest

• Sharing

How are goods in a grocery store allocated?

• Price

• Force

• Contest

Erin ran the fastest and won the race. She received a gift card from Chick-Fil-A for winning. What type of allocation got her the gift card?

• Lottery

• Sharing

• Contest