FutureSmart_SmartShopping_(1)

Which of the following would be considered a want rather than a need for most people?

• Nutritious food

• A place to live

• Warm clothes in the winter

• A smartphone

Which one of these is NOT a successful budgeting strategy?

• Think about which items are your most important needs.

• Keep some extra money in your budget for emergencies.

• Pay with a credit card if you have a hard time sticking to a budget.

• Revisit your budget regularly and make adjustments.

Which of the following is NOT true of a budget?

• Budgets help you plan how to spend money you earn or receive.

• Once you finish making your budget, you should not change it.

• A budget can include donations to charities.

• Budgets include both expenses and income.

You received $50 as a birthday gift and chose to spend it on a new wallpaper for your room. The opportunity cost of this decision is:

• All of the above.

• The price of the wallpaper you bought.

• The other items you could have purchased with your $50.

• The time you could have spent doing other things.

If you know the unit prices of two different brands of an item, you are better able to:

• Figure out the discount during a sale on the two items.

• Determine which of the two brands is higher quality.

• Estimate how much of the item you will need.

• Compare the prices of the two brands.

Your friend's parents are worried about going over their budget for a month. Which expense would you suggest is NOT a need?

• Groceries

• Cable service

• Rent payment

• Car insurance

Which of the following is a variable expense for many adults?

• The monthly payment on their car loan.

• Their monthly cost of eating out at restaurants.

• Their monthly rent payment.

• Their monthly payment for health insurance.

You are going to buy a computer, but first you want to do some research to help you select the best model for your your needs. Where should you look for the fairest and most reliable information?

• The website of a popular computer company.

• Advice from a salesperson in a computer store who earns commissions on sales.

• An independent consumer education website that reviews and rates computers.

• Advertisements that a computer company puts in a computer magazine.

Select the answer that best describes what an opportunity cost is:

• The amount of money you put into savings each year.

• The trade-off of making one choice and giving up a different choice.

• The amount of money a business makes every year from sales.

• The benefit you gain by choosing one option versus another.

You are creating a budget for your new business. What should you include?

• All income and expenses.

• Fixed expenses but not income.

• Income but not variable expenses.

• Fixed and variable expenses but not taxes.