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Unit 3 Day 2

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is the definition of opportunity cost?

a)

The money you earn from a job

b)

What you give up when you choose one option over another

c)

The time spent on an activity

d)

The resources you have available

2.

Why is time considered a resource?

a)

Because it can be bought and sold

b)

Because there are only 24 hours in a day

c)

Because it is unlimited

d)

Because it is not important

3.

What happens when you use time for one activity?

a)

You can use it for another activity at the same time

b)

You cannot use it for another activity

c)

You gain more time

d)

You lose money

4.

Which of the following best describes opportunity cost in your own words?

a)

The benefit you receive from a choice

b)

The next best alternative you give up when making a decision

c)

The total cost of all options

d)

The time spent on an activity

5.

If you spend your time studying instead of watching TV, what is your opportunity cost?

a)

The knowledge you gain

b)

The time spent studying

c)

The entertainment from watching TV

d)

The money you save

6.

Why can’t you use time for two activities at once?

a)

Because time is unlimited

b)

Because time is a limited resource

c)

Because activities are not important

d)

Because you can always make more time

7.

What is the definition of income?

a)

Money that comes in to you

b)

Money that you spend

c)

Money that you save

d)

Money that you borrow

8.

Which of the following is NOT a main type of income?

a)

Earned income

b)

Investment income

c)

Passive income

d)

Borrowed income

9.

Which type of income takes the most time to earn?

a)

Passive income

b)

Investment income

c)

Earned income

d)

Gift income

10.

Investment income is money earned from which sources?

a)

Work hours

b)

Interest and dividends

c)

Gifts

d)

Selling products

11.

Which type of income is most likely to be received without working actively?

a)

Earned income

b)

Investment income

c)

Passive income

d)

Salary income

12.

Why does earned income take the most time to earn?

a)

Because you must work hours to earn it

b)

Because it comes from investments

c)

Because it is received passively

d)

Because it is a gift

13.

Which of the following is NOT usually needed to reach a financial goal?

a)

Money

b)

Time

c)

Energy

d)

Luck

14.

If someone has a lot of time but little money, which resource might they need to focus on to reach a financial goal?

a)

Money

b)

Time

c)

Energy

d)

Food

15.

What is a possible reason why time is considered limited?

a)

Because everyone has unlimited time.

b)

Because time cannot be increased.

c)

Because time depends on wealth.

d)

Because time is easy to get.