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.