Module 6 Quiz

What is the best definition of an "opportunity cost?"

• Every time you decide to do something, something else comes your way also.

• Every time you make a decision, a cost is involved. You give up something else.

• Every time you are giving up something, something else is given up as well.

• Every time you choose, a choice is made.

Your aunt sends you a card with $25 in it, because she was feeling nice. What is your opportunity cost?

• $25

• The card

• $50

• You do not have an opportunity cost.

Your aunt sends you a card with $25 because she was feeling nice. What is HER opportunity cost? There are multiple correct answers.

• Donating $25 to a shelter

• Sending her best friend $25

• Buying a $25 dress

• She does not have an opportunity cost.

You are faced with this scenario. Which one are you choosing? (No correct/wrong answers) Today is an unexpected snow day! You do not have any plans, so you are deciding what you want to do.

• Accept a neighbor's offer to help them go plow; it will take all day, and you will earn about $100.

• Go snowmobiling and sledding with your friends all day.

• Spend the day relaxing inside with some warm treats and catching up on homework so you don't have any for the weekend.

If you budget your time, you do not need to budget your money.

• True

• False

What did Tom from Livermore Computers say has been the most challenging part of starting his own business?

• Tuning out advice from people who weren't helping

• Setting his own hours

• Figuring out how to manage the budget

• Finding qualified employees to hire

Sarah wants to buy a new bicycle that costs $300, but she also wants to save money for a vacation. She decides to save for the vacation instead. What is the opportunity cost of her decision?

• $300

• The bicycle

• The vacation

• Nothing, because she didn't spend any money.

Which of the following is NOT an example of an opportunity cost?

• Choosing to study for a test instead of going to a party.

• Deciding to buy a new phone instead of repairing your old one.

• Using your allowance to buy candy instead of saving it for a new toy.

• Earning a high salary at your dream job.

Why is budgeting your money important?

• It helps you spend money on whatever items/expenses you want.

• It ensures that you never have to make choices.

• It restricts your spending on all items.

• It helps you track your expenses and make informed financial decisions.

You are faced with this scenario (no right or wrong answer) You are choosing between two job offers. One offers a high salary ($100,000) but a very long commute (1 hour each way) and the other offers a lower salary ($80,000) but is within walking distance. Which job are you taking?

• Higher salary/1 hour commute each way

• Lower salary/within walking distance