WorksheetsChapter 2 - Prioritize Purchases
Total questions: 20
Worksheet time: 20mins
Needs are things that are necessary for maintaining physical life.
TRUE
FALSE
As consumers, we spend according to our needs and wants.
TRUE
FALSE
An example of consumption is choosing between going out or staying home.
TRUE
FALSE
Opportunity cost is an economic concept representing the benefits you could have received by choosing the alternative.
TRUE
FALSE
Economic resources include things like the money, land, material goods, and human knowledge and labor used to produce goods and services.
TRUE
FALSE
What is considered to be an economic resource?
Production of goods and services
Consumption of goods and services
Distribution of goods and services
All of these answers
What is one of the top things that teenagers spend money on?
Home goods
Clothes
School
None of the above
What is considered to be a want?
Food
Clothing
Smartphone
Relationships
What influences a person's spending values?
Culture
Family
Friends
All of these choices
What is considered to be a need?
Ice cream
Movies
Water
Concert tickets
Wants are defined as:
Basic needs required for survival
Desires that are not essential for survival
Mandatory obligations
Legal requirements
Standard of living is defined as:
The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.
The total value of goods produced and services provided in a country during one year.
A measure of the amount of goods and services that the average person can buy.
The difference between the value of a country's exports and the value of its imports.
Economy is defined as the system of production, consumption, and distribution of goods and services in a particular geographic region. What does 'Economy' refer to?
A type of government
A system of production, consumption, and distribution
A cultural practice
A technological innovation
Needs are defined as:
Basic requirements for survival
Wants or desires
Luxury items
Unnecessary expenses
Opportunity Cost is defined as:
The value of the next best alternative given up when making a choice
The total cost of all alternatives
The monetary cost of an opportunity
The benefit gained from an opportunity
It is important to prioritize spending because:
it helps manage resources effectively.
it leads to unnecessary expenses.
it complicates budgeting.
it is not necessary for financial planning.
What is the difference between needs and wants?
Needs are essential for survival, wants are not.
Needs and wants are the same.
Wants are essential for survival, needs are not.
There is no difference between needs and wants.
Think about your spending habits over the past three days. Which of the following did you categorize as a need?
Groceries
New Shoes
Concert Tickets
Video Game
Consumers determine their needs and wants differently because:
they have unlimited resources.
they have different values.
they follow the same buying patterns.
they are influenced by the same factors.
Identify an example of opportunity cost.
Choosing to buy a laptop instead of a tablet, giving up the benefits of the tablet.
Buying a phone because it was on sale.
Earning a paycheck after working a full shift.
Saving money in a bank account instead of spending it on unnecessary items.
