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WorksheetsSmart Shopping — Assessment
Total questions: 15
Worksheet time: 8mins
Select the answer that best describes opportunity cost:
The amount of money you put into savings every year.
What you give up as a result of choosing one option versus another; a trade-off.
The amount of money a business makes every year from sales.
What you gain as a result of choosing one option versus another; a benefit.
Before buying a new computer, you want to do some research to help you select the best model for your needs. Where should you look for the most objective and unbiased information?
The most popular computer company's website
Paid advertisements in a technology magazine
A salesperson at an electronics store who earns commission on sales
An independent consumer education website that reviews and rates technology products
Which of the following expenses should be included in a typical budget?
Taxes
Charitable giving
Savings
All answers are correct.
Which of the following would be considered a want for most people?
A brand-name jacket
Transportation to get to work
A place to live
Nutritious food
If you know the unit price of an item, you are better able to:
Compare prices of two brands.
Estimate how much you will need.
Determine the total cost of the purchase.
Figure out the discount during a sale.
Which of the following would be considered a want rather than a need for most people?
Warm clothes in the winter
A place to live
A smartphone
Nutritious food
Select the answer that best describes what an opportunity cost is:
The amount of money you put into savings each year.
The trade-off of making one choice and giving up a different choice.
The amount of money a business makes every year from sales.
The benefit you gain by choosing one option versus another.
You are going to buy a computer, but first you want to do some research to help you select the best model for your needs. Where should you look for the fairest and most reliable information?
The website of a popular computer company
Advertisements that a computer company puts in a computer magazine
An independent consumer education website that reviews and rates computers
Advice from a salesperson in a computer store who earns commissions on sales.
You are creating a budget for your new business. What should you include?
All income and expenses
Fixed expenses but not income
Income but not variable expenses
Fixed and variable expenses but not taxes
Which of the following is a variable expense for many adults?
Their monthly cost of eating out at restaurants
Their monthly rent payment
The monthly payment on their car loan
Their monthly payment for health insurance
Your friend’s parents are worried about going over their budget for the month. Which expense would you suggest is NOT a need?
Rent payment
Car insurance
Cable service
Groceries
If you know the unit prices of two different brands of an item, you are better able to:
Compare the prices of the two brands.
Estimate how much of the item you will need.
Determine which of the two brands is higher quality.
Figure out the discount during a sale on the two items.
You received $50 as a birthday gift and chose to spend it on new wallpaper for your room. The opportunity cost of this decision is:
The price of the wallpaper you bought.
The other items you could have purchased with your $50.
The time you could have spent doing other things.
All answers are correct.
Which of the following is NOT true of a budget? [note capitalization of “NOT”]
Budgets help you plan how to spend money you earn or receive.
Once a budget is set, it should not be revisited.
A budget can include charitable giving.
Budgets include both income and expenses.
Which of the following is NOT a successful budgeting strategy?
Keep some extra money in your budget for emergencies.
Pay with a credit card if you have a hard time sticking to a budget.
Think about which items are your most important needs.
Revisit your budget regularly and make adjustments.
