Title: QUIZ: Money and Missed Opportunities -- Page One Economics®
Course: Kelly's Copying and Exporting Course > Section: Money and Missed Opportunities -- Page One Economics®

Q: The reason people cannot have everything they want is because of
- scarcity.
- explicit alternatives.
- shortages.
- credit.
A: scarcity.

Q: AJ is buying a new car and chooses to pay $250 for upgraded floor mats because he is already spending $24,000; the $250 is only about 1 percent of the purchase price. This describes an example of
- taking into account the opportunity costs of buying the car and making the best choice.
- relative value because he is comparing the value of the floor mats relative to the value of the car.
- the best way AJ can spend his money because he is thinking of everything he could do with his money.
- the unseen alternatives of his decision, such as saving money or paying for college.
A: relative value because he is comparing the value of the floor mats relative to the value of the car.

Q: Tati made an impulse purchase by buying a $1,000 handbag. An impulse purchase means that she most likely did not think of the ____________ alternatives for the $1,000.
- best
- explicit
- implicit
- worst
A: implicit

Q: Opportunity cost is
- all of the alternatives we have in making a decision.
- the condition that exists when there are limited wants and unlimited resources.
- the value of the next-best alternative when a decision is made; it’s what is given up.
- the price that is paid when purchasing something you do not really want.
A: the value of the next-best alternative when a decision is made; it’s what is given up.

Q: Which of the following best describes why people are impatient to make a purchase?
- Many items are not available for purchase in the future.
- People consider their opportunity costs carefully when making a decision.
- Consumption today is valued more than consumption in the future.
- There is nothing else that money can be spent on in the future.
A: Consumption today is valued more than consumption in the future.

Q: One of the reasons people may find it difficult to save is because
- the benefits of saving are experienced immediately.
- interest is earned when you save.
- they have less money to spend now.
- they have more money to spend in the future.
A: they have less money to spend now.

Q: The information, alternatives, and opportunity costs present at the time of making a decision are known as
- benefits of making a decision.
- implicit alternatives.
- trade-offs.
- explicit alternatives.
A: explicit alternatives.

Q: How is it possible for someone to spend more money than they make?
- They can make a purchase by using credit.
- They can save enough to make a purchase.
- They can make a purchase by using saved money.
- They can wait until their next paycheck to make the purchase.
A: They can make a purchase by using credit.