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WorksheetsFinancial Decision Making - review
Total questions: 26
Worksheet time: 13mins
The value of the next best alternative when a decision is made.
opportunity cost
value
scarcity
choices
Scarcity exists because
China has the resources we need.
there aren't enough resources to produce everyone's wants
everything is too expensive
the government has control over all our resources
You can earn a higher wage rate by
building skills that are scarce in the labor market
working more hours each week
beginning a job immediately after high school
working for your family
What are the steps in the PACED decision-making model?
define the problem, act on the problem, choose possible, solutions, and execute the decision
define the problem, list alternatives, choose possible solutions, evaluate alternatives, and make a decision
prepare the model, align the model, choose possible solutions, evaluate alternatives, and make a decision
You had three options for the evening: play football, go bowling, or watch TV. You really wanted to get some exercise. You chose to go bowling. What was your opportunity cost?
football
bowling
TV
football and TV
Which of the following is likely to have the least influence on an individual's values?
grade average
family
media
religious affiliations
Fundamental beliefs that are worthwhile and important to you
opportunity cost
wants
needs
values
Which of the following factors is not influenced by values?
individual's choice of friends
individual's financial decisions
individual's life cycle position
individual's daily decisions
Scarcity is the fundamental problem that all people in all economic systems face.
True
False
Because of scarcity, we must all make choices.
True
False
What would not be an opportunity cost of spending your weekend sleeping?
getting plenty of sleep
buying new clothes at the mall
spending time with your friends
getting exercise at the gym
This is an example of a human resource
waitress
food
oven
restaurant
Something that you cannot survive without:
want
need
value
opportunity cost
An example of a want:
food
shelter
water
X-box 360
Using the PACED decision-making model, which alternative will not be a reasonable solution to the problem of where to eat dinner?
Bread and Butter
Fuji
Sonic
Shoe Carnival
Everyone using the PACED decision-making model will end up making the same decision
True
False
Use the PACED decision making model to decide which car to purchase.
Fit
Elantra
Mazda CX-3
Cruze
Use the PACED decision making model, what is your opportunity cost?
Fit
Elantra
Mazda CX-3
Cruze
You should make all of your decisions using the PACED decision making model.
True
False
Why is there no such thing as a free lunch?
You could choke on the free hamburger and have to go to the hospital.
You must pay for everything you eat.
Every choice involves an opportunity cost.
There is plenty of food for everyone.
Regina will save her allowance of $25 per month to purchase a $150 mp3 player in six months. This is an example of what type of goal?
short-term goal
long-term goal
mid-term goal
this is not an example of a goal
Which element of a financial goal is missing? "I will save $150 each month to go on a vacation in one year."
time bound
specific
attainable
measurable
Bruce and Jennifer, a recently married couple with full-time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set?
short-term
intermediate
long-term
unrealistic
Lindsey's academic advisor has asked her to set 3 academic goals for this semester. These goals are MOST LIKELY to be accomolished if:
Lindsey discusses her goals with her parents.
Lindsey lets her friends set her goals.
Lindsey writes her goals down.
Lindsey thinks about her goals weekly.
Jessica 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 life.
People can increase their ability to earn a higher wage rate by
building skills that are scarce in the labor market.
working more hours per week.
reducing their time in education and jumping right into the labor market.
working in a family business.
