FutureSmart: Smart Shopping

Select the answer that best describes opportunity cost:

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

• What you give up as a result of choosing one option versus another; a trade-off.

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

• What you gain as a result of choosing one option versus another; a benefit.

Before buying a new computer, you want to do some research to help you select the best model for your needs. Where should you look for the most objective and unbiased information?

• The most popular computer company's website

• Paid advertisements in a technology magazine

• A salesperson at an electronics store who earns commission on sales

• An independent consumer education website that reviews and rates technology products

Which of the following expenses should be included in a typical budget?

• Taxes

• Charitable Giving

• Savings

• All of the above

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

• A brand-name jacket

• Transportation to get to work

• A place to live

• Nutritious food

If you know the unit price of an item, you are better able to:

• a. Compare prices of two brands

• b. Estimate how much you will need

• c. Determine the total cost of the purchase

• d. Figure out the discount during a sale

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

• Warm clothes in the winter

• A place to live

• A smartphone

• Nutritious Food

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

• The website of a popular computer company

• Advertisements that a computer company puts in a computer magazine

• An independent consumer education website that reviews and rates computers

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

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

What is the best way to ensure you are getting a good deal when shopping?

• Always buy items on sale

• Buy the most expensive option to ensure quality

• Purchase only what is necessary, regardless of price

• Wait for a friend’s recommendation before purchasing