Unit 7 Test Flashcards
Why do economic decisions vary from person to person even under the same circumstances?
Costs and benefits are subjective.
Which of these statements most accurately describes the costs and benefits of using a credit card?
Credit cards are convenient but can result in debt.
Which of these statements describes one of the opportunity costs of attending college?
Time spent on schoolwork takes away from the chance to earn money at a job.
What do leases contain?
the obligations of renters and landlords
In which situation would fee-for-service insurance be useful?
You want to choose your own doctor or hospital.
When is liability insurance needed?
when you cause an accident that damages another vehicle or hurts someone
Which of these statements describes a situation in which people have to pay a deductible?
Their insurance policy only covers part of a medical expense.
What is a bank customer’s share of the profits made on loans?
savings account interest
What makes a checking account more convenient than a savings account?
You can spend your money without having to withdraw cash first.
With which type of account is a minimum balance fee associated?
checking account
What is the main reason to use a personal budget?
to stay out of debt
Which is the first step in making a personal budget?
Add up all sources of income.
Which of these is an example of discretionary spending?
vacation
What are you paying for when you lease a car?
the decrease in the car’s value
What does an amortization table show?
the principle and interest being paid on a loan
