Personal Finance Review 24-25

______________ is when there is not enough of a good or service for everyone.

• Scarcity

• Allocation

• Opportunity Cost

Why do we have to make choices when spending money?

• We have too much money to spend.

• We cannot have everything we want.

• We do not want to miss out on anything.

Use the information to answer the question. Patrick chose a red pencil instead of a blue pencil. Which pencil is the opportunity cost?

• both pencils

• the red pencil that Patrick chose

• the blue pencil that Patrick did not choose

Maurice’s mom made a cake for his class to celebrate his birthday. Every student was given a piece of cake. What type of allocation did Maurice’s mom use?

• price

• contest

• sharing

Charlene ran the fastest and won the race. She received a gift card from Chick-fil-A for winning. What type of allocation got her the gift card?

• lottery

• sharing

• contest

Johnny won a new bike because his name was pulled out of a basket of everyone’s name. How was the bike allocated?

• lottery

• sharing

• Authority

What does it mean to “barter” with a friend?

• to trade with your friend

• to sell something to your friend

• to buy something from your friend

What is one benefit to using money instead of bartering?

• Money is used by everyone to buy goods.

• Money is hard to use to buy goods.

• Money is hard to find.

What is one benefit of spending money?

• It is boring to buy new things.

• It is helpful to buy things you need.

• It takes a long time to spend money.

What is one benefit of saving money?

• buying something now

• having more money later

• giving away a lot of money