Smart Shopping - Assessment Questions

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.

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

Which of the following is a variable expense for many adults?

• Their monthly cost of eating out at restaurants

• Their monthly rent payment

• The monthly payment on their car loan

• Their monthly payment for health insurance

Your friend’s parents are worried about going over their budget for the month. Which expense would you suggest is NOT a need?

• Rent payment

• Car insurance

• Cable service

If you know the unit prices of two different brands of an item, you are better able to:

• compare the prices of the two brands.

• estimate how much of the item you will need.

• determine which of the two brands is higher quality.

• figure out the discount during a sale on the two items.

You received $50 as a birthday gift and chose to spend it on new wallpaper for your room. The opportunity cost of this decision is:

• the price of the wallpaper you bought.

• the other items you could have purchased with your $50.

• the time you could have spent doing other things.

• all of the above.

Which of the following is NOT true of a budget?

• Budgets help you plan how to spend money you earn or receive.

• Once a budget is set, it should not be revisited.

• A budget can include charitable giving.

• Budgets include both income and expenses.

Which of the following is NOT a successful budgeting strategy?

• Keep some extra money in your budget for emergencies.

• Pay with a credit card if you have a hard time sticking to a budget.

• Think about which items are your most important needs.

• Revisit your budget regularly and make adjustments.