Personal Finance - Unit 1 TEST

What is an example of a need?

• Smartphone

• Video games

• Housing

• Eating out

What does scarcity refer to?

• The study of economics

• Having limited resources for unlimited wants

• High supply and low demand

• Setting financial goals

What is the definition of opportunity cost?

• The surplus created by excess supply

• The cost of foregoing one option to pursue another

• The balance of supply and demand

• The process of creating SMART goals

Which is an example of a want?

• Groceries

• Water

• Eating out

• Transportation

What is the equilibrium point?

• When supply is higher than demand

• When demand is higher than supply

• The price point where supply and demand are equal

• The shortage caused by low prices

What are financial goals?

• Objectives tied to money management and planning

• The science of managing resources

• The desired result of an educational program

• The end result of setting SMART goals

What does SMART in SMART goals stand for?

• Specific, Measurable, Attainable, Realistic, Time-bound

• Simple, Measurable, Accurate, Realistic, Timely

• Specific, Motivational, Achievable, Reliable, Timely

• Simple, Manageable, Attainable, Rational, Tested

A shortage occurs when:

• Supply is high, but demand is low

• demand is high, supply is low

Which term describes the science of managing money?

• Economics

• Finance

• Vision

• Goal

What is a surplus?

• A result of high supply and low demand

• A shortage in the market

• The balance between supply and demand

• A financial goal