Opportunity Cost and PYF

What is the definition of opportunity cost?

• The cost of an opportunity

• The benefit of an opportunity

• The value of an opportunity

• The next best alternative given up when making a choice

Which of the following is an example of opportunity cost?

• Choosing to go to a party instead of studying for an exam

• Buying a new phone with saved money

• Eating pizza for dinner instead of cooking at home

• Going on a vacation with friends

What is the definition of PYF?

• Pay Yourself First
  

• Plan Your Future

• Protect Your Finances

• Prioritize Your Family

Which of the following is true about opportunity cost?

• It is always monetary in nature

• It is the same for everyone

• It can be different for different individuals

• It is not a relevant concept in decision making

What is the opportunity cost of choosing to watch a movie instead of studying?

• The cost of the movie ticket

• The time spent watching the movie

• The knowledge gained from studying

• The enjoyment of watching the movie

Which of the following is NOT a factor affecting opportunity cost?

• Time

• Resources

• Preferences

• Weather

What is the opportunity cost of buying a new car?

• The cost of the car

• The value of the car

• The next best alternative that could have been purchased with the money

• The pleasure of owning a new car

When it comes to personal savings, What does the acronym PYF stand for?

• Prepare your future

• Pay your friends

• Pay yourself first

• Prepay your finances

Protection against risk is the primary reason people purchase this type of policy.

• Home Insurance

• Health Insurance

• Auto Insurance

• All of the above

What is one pro about owning a health insurance policy?

• It allows you to get regular medical health care.

• Hospital and surgery bills will not be covered.

• It is too expensive and no one can afford it

• Health insurance can help pay for college