First Semester Review

What is opportunity cost?

• The total amount of money you earn

• The value of the next best choice you give up

• The cost of everything you buy

• The money you save for retirement

Which of the following is an example of opportunity cost?

• Comparing prices online

• Buying concert tickets instead of saving money

• Making a grocery list

• Depositing money into savings

Which of the following is considered a need?

• Designer shoes

• Streaming subscriptions

• Groceries

• Concert tickets

Which of the following is considered a want?

• Rent

• Electricity bill

• Smartphone upgrade

• Basic groceries

A budget is best described as:

• A type of bank account

• A plan for income and expenses

• A list of purchases only

• A loan agreement

Which of the following counts as income?

• Car insurance payment

• Grocery bill

• Paycheck from a job

• Rent payment

Which of the following is an expense?

• Birthday money

• Salary

• Rent payment

• Tax refund

The main purpose of a budget is to:

• Avoid taxes

• Eliminate all wants

• Control spending and reach goals

• Increase your paycheck automatically

Which of the following is NOT a benefit of budgeting?

• Saving money

• Reducing stress

• Automatically earning more income

• Paying off debt

What should you do first when creating a budget?

• Make a shopping list

• Outline your income

• Review debts

• Buy budgeting software