Wants and Needs Quiz

What is the difference between wants and needs?

• Wants are short-term desires, while needs are long-term goals.

• Wants are tangible items, while needs are intangible.

• Wants are things that are necessary for survival, while needs are things that are not essential.

• Wants are desires or preferences, while needs are necessities.

Why is it important to differentiate between wants and needs?

• To prioritize and allocate resources effectively.

• To understand the difference between luxury and necessity.

• To make informed decisions about purchases.

• To avoid overspending and debt.

Give an example of a want and a need.

• A want example: luxury vacation

• A need example: shelter

• A want example: designer clothing

• A want example: new car, A need example: food

How can you prioritize your wants and needs?

• Ask others for their opinion.

• Rank them based on personal preference.

• Make a list and evaluate based on importance and urgency

• Choose randomly without any evaluation.

What is opportunity cost?

• The value of the chosen alternative

• The value of the next best alternative that is forgone when making a decision.

• The cost of a decision

• The cost of an opportunity

Explain how opportunity cost relates to wants and needs.

• Opportunity cost is the value of the alternative that is not chosen when making a choice.

• Opportunity cost is the value of the least desirable alternative that is chosen when making a choice.

• Opportunity cost is the value of the next best alternative that is forgone when making a choice.

• Opportunity cost is the value of the most expensive alternative that is chosen when making a choice.

Why is it important to consider the impact of wants and needs?

• To disregard personal preferences

• To make impulsive decisions

• To prioritize and make informed decisions

• To waste time and energy

What are some potential consequences of prioritizing wants over needs?

• Financial instability, increased debt, and lack of fulfillment.

• Decreased savings, inability to meet basic needs, and strained relationships

How can understanding wants and needs help in making better decisions?

• Understanding wants and needs can limit creativity and innovation in decision-making.

• Understanding wants and needs is irrelevant in decision-making.

• Understanding wants and needs can lead to indecisiveness and confusion.

• Understanding wants and needs helps in making better decisions by providing clarity on what is truly important and necessary.

Give an example of a situation where you had to make a decision based on wants and needs.

• Deciding to spend money on unnecessary items instead of saving for a future goal.

• Deciding to buy a new phone instead of saving money for the vacation.

• Deciding to prioritize wants over needs in a financial decision.

• Deciding to save money for the vacation instead of buying a new phone.