Unit 8: PFL Review

Bad weather destroyed most of the peaches on the peach trees in an orchard. This will have an effect on the price of the remaining peaches. Complete the statement below to describe what effect this will have on the price of peaches. The price will likely ​ (a)   because there are ​ (b)   peaches available to buy.

• Increase
• Fewer
• Decrease
• More

Denny's car broke down and he needs to get it repaired. He does not have enough money in his savings account to pay for the repair. How can he still get his car repaired?

• He can borrow money from the bank, and repay the bank with interest.

• He can borrow money from the bank, and his friend will repay the bank with interest.

• He can borrow money from the bank, and never have to repay the debt.

• He can borrow money from the bank, and use the money to repair his car.

Hector works as a pilot for an airline company. Which factor would most likely affect the amount of money that he gets paid to be a pilot?

• How many friends Hector made in school.

• The level of education and training Hector has completed.

• How many people are in Hector's family.

• How much money Hector saves from his paychecks.

What term best applies to the amount of money earned from labor, business investments, or the sale of property?

• spending

• income

• savings account

• withdrawal

Which of the following scenarios best describes a planned decision?

• Hannah went to the store to buy school supplies, and spent her money on candy instead.

• Kyle saved for two months to buy new hockey skates.

• Trey asked his parents for money for the book fair at school.

• Cassie gave her friend $2.00 to buy chips at lunch.

People often use credit when:

• they need to sell items.

• they want to buy something they cannot afford.

• they have saved their money for a planned purchase.

• they want to buy something they can easily afford.

Autumn completes high school and chooses to attend a local 4-year university. If she graduates from college she will increase both her knowledge and skills and may also have a better chance to get a job that:

• pays her well.

• helps her get married.

• gives her more friends.

• is really easy.

What is a common reason people might choose to take out a loan?

• To purchase something they cannot afford upfront.

• To decrease their savings.

• To give money to friends.

• To avoid paying taxes.

Which of the following is an example of an unplanned expense?

• Saving for a new phone.

• Repairing a car after an unexpected breakdown.

• Paying for a planned vacation.

• Buying groceries for the week.

Why might someone choose to invest in their education?

• To increase their leisure time.

• To improve their job prospects and potential earnings.

• To avoid working altogether.

• To make new friends.