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WorksheetsPF Unit 1-2 Exam Review
Total questions: 65
Worksheet time: 42mins
Megan’s mother suggested that she was experiencing the consequences of her trade-off regarding a decision she made to purchase a dress for prom. Which situation does Megan most likely find herself in for her mother to have made this comment?
Megan had shopped at several stores when she found the prom dress of her dreams and purchased it. She used the money she had saved for the prom dress plus most of the money she had saved for replacing the tires on her car. Now the tires need replacing and Megan is short on the cash needed to do the job.
Megan had shopped at several stores when she found the prom dress of her dreams. She checked online and found a coupon that enabled her to save 30% when she returned to the store to purchase the dress.
Megan had shopped in several stores and found six prom dresses she liked a lot. She brought 2 friends shopping with her to tell her which one looked best on her. After much deliberation, she chose the dress that was the least expensive of the 3 she liked best.
Megan had shopped in the store her mother recommended for her prom dress. She found two dresses she liked a lot. Megan purchased the one that was the most comfortable even though it cost $28 more than the other one.
Whitney is shopping with her mom and they are deciding on clothing to purchase. Which scenario best represents the purchase of a need?
Whitney is being inducted into the National Honor Society at her high school. Students have been directed to ‘dress nicely’. Whitney has a dress she wore to a wedding last year that still fits but her mom thinks she needs a new one to celebrate this occasion.
Whitney has been selected to attend a national leadership conference and has been instructed that she will need to dress ‘professionally’ for one of the tours. She plans to wear her new jeans and a T-shirt that has the logo of the leadership conference on it. Her mother thinks she needs to purchase something more appropriate.
Whitney has several pairs of jeans in her closet but found some that really fit her well at an excellent price when she and her mom were shopping. Her mom agrees that with these jeans at this price, they need to purchase a pair.
Whitney will be traveling to Europe with a youth ambassador program this summer. She has been instructed to pack a rain jacket. The rain jacket she already owns does not have a hood since she always uses an umbrella in rainy situations. Her mom believes she needs to purchase a hooded rain jacket because it would be more convenient.
Sylas is studying financial planning in one of his classes. His teacher has assigned him to create a timeline of his financial future. Where should the end of his financial planning timeline be set?
When his financial goals have been established
When his money management plan has established high well-being
When he is 70 years old
Never – it is an ongoing process
Erica wants her class project to reflect her values. Which items would be best to include?
Things that she intends to acquire, do, reach, or accomplish in the near or distant future
Things that are necessary or essential for life and survival
Things that reflect her fundamental beliefs about what is worthwhile and important to her
Things that are unnecessary but desired which increase the quality of her life
Which of the following factors is not influenced by values?
An individual’s choice of friends.
An individual’s daily decisions.
An individual’s life cycle position.
An individual’s financial decisions.
Ian has been shopping for a different vehicle for the past several months. He needs something reliable and would really like something with a nice sound system. He and his parents have talked about how much he can afford and he plans to stay within the price guidelines he and his family have set. Ian was analyzing the opportunity cost of a trade‐off regarding which car to purchase. Which situation best
represents what he might be thinking through?
Ian is comparing new vehicles at two car dealerships. He was able to find nearly identical cars at nearly identical prices. One dealership is 20 miles away and the other dealership is 30 miles away.
At a local dealership, Ian has found two different cars that meet his needs. The first car has a better sound system than the other. The second car has 20,000 fewer miles on it.
Ian has been shopping for a vehicle online. He finds something that would meet his needs being sold by an individual near him. He would be able to purchase this car for less than he would have
paid for a comparable vehicle at a car dealership.
Ian’s older brother is trading vehicles and offers to sell Ian his used vehicle. This vehicle would meet Ian’s needs and he knows the service history of the vehicle is excellent.
As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. What is this
extra 6% charge most likely to be?
An excise tax on the shirt she purchased.
Property tax on the shirt she purchased.
Income tax on the shirt she purchased.
Sales tax on the shirt she purchased.
Dane is researching the topic of property taxes for a presentation he is doing in his Personal Finance class. He has come across the following statements he is considering adding to his presentation. Which should he EXCLUDE from his presentation because it is not correct?
Property taxes are assessed at the same rate for all types of property, including homes, land and building, regardless of location or whether they are used for business or personal use.
Property taxes are usually charged by state and local governments to pay for local schools and other services and expenses incurred by these governments.
Property taxes are commonly paid on automobiles. This tax usually paid once per year when the automobile is licensed.
Property tax on homes, land and buildings are usually only paid once or twice each year.
Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid$8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin’s pay is less than he expected it to be?
Austin calculated the hours he worked without deducting the hours he spent doing on‐the job training.
Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job.
Austin neglected to deduct the amount required to pay income and payroll taxes.
Austin’s employer made a mistake calculating the number of hours Austin worked during his first pay period.
If expenses were to exceed income on a spending plan, what would be a financially smart solution?
Decrease expenses
Use a credit card more often
Earn less income
Increase purchases
Diana and Aaron have decided to develop a spending plan to help them gain control over their finances. Which of the following statements is NOT TRUE about spending plans?
Spending plans are used to record planned income.
Spending plans are used to record planned expenses.
A spending plan includes items NOT usually included when creating a budget.
When creating a pending plan, it is recommended that you examine your trade‐offs and opportunity costs.
When is your spending plan complete?
When you have allocated all your income into categories for the month.
When you have all of your current income and expenses recorded.
Spending plans are always under revision so they are never complete.
Spending plans are complete each December 31st as one year ends and another year begins.
Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non‐contractual expenses. Which of his expenses best fit that category?
Cell phone bill, gasoline, and car payment
Internet bill, entertainment, and clothing
Motorcycle payment, food, and cell phone bill
Gasoline, food, and entertainment
Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his FIRST step?
Decide what income and spending categories would reflect his values, needs, and wants.
Decide how much money he can spend for each of the bills he pays each month.
Track his current income and expenses. If he has already created an Income and Expense Statement then he has completed this step.
Develop a control system that will work with his life style.
To calculate her net worth Jordyn should use the following formula
Assets - liabilities = net worth
Assets x liabilities = net worth
Assets + liabilities = net worth
Assets / liabilities = net worth
