Decision-Making Process Quiz

Which term describes the cost of the next best alternative that you give up when making a choice?

• Scarcity

• Opportunity Cost

• Budget

• Trade-Off

Which of the following refers to goods and services that are limited compared to wants?

• Trade-off

• Scarcity

• Income

• Need

What is the process of comparing the benefits and costs of different options before making a choice?

• Evaluating alternatives

• Spending

• Saving

• Scarcity

What is a written plan for how you will spend your money called?

• Investment

• Budget

• Scarcity

• Expense

Which step in the decision-making process involves reviewing the results of the choice you made?

• Identify the problem

• Gather information

• Evaluate the decision

• Make a choice

Maria has $40. She can either buy a new pair of shoes or go to the movies with her friends. She chooses the shoes. What is her opportunity cost?

• The shoes

• The movie with friends

• The $40 she spent

• Her budget

Jordan is trying to decide whether to buy a new video game or save his money for a new phone. Which step of the decision-making process is he using when he lists the pros and cons?

• Identify the problem

• Gather information

• Evaluate alternatives

• Review the decision

A student is saving money to buy a laptop for school. Instead of eating out every day, they bring lunch from home. What decision-making strategy are they using?

• Making a trade-off

• Ignoring opportunity cost

• Wasting resources

• Budgeting

If you buy a product because your favorite celebrity promotes it without comparing other options, which step of the decision-making process did you skip?

• Identify the problem

• Evaluate alternatives

• Review the decision

• Make a choice

Samantha made a choice to buy a used car instead of a new one. Later, she reviews whether it was a good decision by looking at gas costs, repairs, and her savings. What step is this?

• Identify the problem

• Make a choice

• Review the decision

• Evaluate alternatives