7.11 Unit Test: Personal Finance Part 1

Question: Why do people reach different decisions using cost-benefit analysis even under the same conditions?

Answer: Costs and benefits are both subjective.

Question: Which of these statements describes the costs and benefits of taking a college loan?

Answer: College loans help increase future earning power but result in a long-term commitment to monthly payments.

Question: Why does attending college involve an opportunity cost?

Answer: The money spent on tuition cannot be invested in another way.

Question: What do leases contain?

Answer: the obligations of renters and landlords

Question: In which situation would renter’s insurance be useful?

Answer: Your personal possessions are stolen from your apartment.

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