Module 2 Quiz Review

Ethan, William, and Mason are discussing their basic needs. What is the definition of a need?

• This is an item you CAN live without (ie: newest Jordan sneakers).

• This is an item you CANNOT live without (ie: food).

Benjamin is deciding whether to buy the newest Jordan sneakers or groceries for the week. Which of these is considered a WANT?

• The newest Jordan sneakers.

• Groceries for the week.

Aria has two options for her Saturday evening: going to the movies with Michael or staying at home and cleaning her room. What is the opportunity cost in this scenario?

• When Aria loses the chance of getting the movie tickets on sale.

• When Aria purchases the movie tickets that are heavily discounted.

• When Aria makes a trade-off (going to the movies instead of cleaning her room).

• When Aria is deciding between two choices and she doesn't like either option.

True or False: The opportunity cost of her decision ONLY occurs when making financial decisions.

• True

• False

Match the following:

• Variable expense

• Refers to the money you are spending every month.

• Fixed Expense

• This expense is the same amount every month.

• Income

• This expense changes every month.

• Expenses

• Refers to how much money you make every month.

Olivia is planning to create a budget for her monthly expenses. What should she consider first?

• Her fixed and variable expenses such as rent and groceries.

• How much money she has to spend per month?

• She should consider her income and expenses.

• Only consider how much she spends on rent and car payment.

Charlotte, Nora, and James are discussing their monthly expenses. Charlotte mentions a certain expense that doesn't change month to month. Which example below best describes the expense Charlotte is referring to?

• James's cell phone bill (if he doesn't have an unlimited phone plan).

• Nora's car payment.

• The money Charlotte spends on groceries.

• The amount Nora spends on clothes shopping.

Michelle, Hannah, and Nora are discussing their monthly expenses. Which of the following expenses can be considered variable expenses for them?

• Car payment

• Groceries

• Nail appointments (assuming they don't go every month)

• Car maintenance fees

Benjamin, Mason, and Anika are planning their monthly expenses. They decide to use a budgeting strategy that involves making a list of their expenses in order of importance. What is this strategy called?

(a)  

Henry, Avery, and James are discussing their monthly budgets. Henry believes that budgets are set in stone and cannot be changed on a monthly basis. Is Henry's belief true or false?

• True

• False