Unit 3 Vocabulary Quiz

Sarah is trying to decide which college to attend. She identifies her problem (choosing the right college), lists her options (schools she was accepted to), sets her criteria (cost, location, programs), evaluates each school based on her criteria, and makes a decision. Which decision-making model is Sarah using?

• Risk Management Model

• Budget Planning Model

• PACED Decision-Making Model

• Cognitive Bias Model

John is considering investing in a new business. However, he knows there’s a chance the business might not succeed, and he could lose the money he invests. What is John concerned about?

• Profit

• Risk

• Diversification

• Wage

Samantha always chooses the same grocery store because she remembers one bad experience at another store, even though it happened years ago and might not be relevant anymore. Which concept is affecting Samantha's decision?

• Opportunity Cost

• Interest

• Cognitive Bias

• Investment

David has $50 and wants to buy a book, but he also needs a new backpack. He chooses to buy the book and gives up getting the backpack for now. What is the opportunity cost of David’s decision?

• The $50 he spent

• The book he bought

• The new backpack he didn’t buy

• The time he spent shopping

Maria works part-time at a coffee shop and is paid based on the number of hours she works each week. What type of income is Maria earning?

• Salary

• Wage

• Profit

• Interest

Carlos is a software engineer at a tech company. He receives the same amount of money each month, regardless of how many hours he works. What type of income is Carlos earning?

• Wage

• Salary

• Dividends

• Bonus

Jane earns money from her job as a teacher, from renting out her apartment, and from the stock investments she made years ago. What are these sources of money collectively called?

• Profit

• Earnings

• Salary

• Income

Megan has always loved helping people, so she decided to become a nurse. After completing her education and training, she has been working in hospitals for over 10 years. What is Megan’s work considered?

• A job

• A side hustle

• A career

• An investment

Lisa is taking classes at a university to earn a degree in accounting so that she can work as a certified public accountant. What is Lisa pursuing?

• Training

• Education

• Work experience

• Investment

Ben just started a new job as a mechanic. To learn how to repair engines, his company is teaching him specific techniques and skills. What is Ben receiving?

• Education

• Salary

• Training

• Wage