APEX Econ 7.1: Making Choices – Flashcards
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Put the steps of cost-benefit analysis below in the correct order.
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1. Come up with an option. 2. Determine the costs of the decision. 3. Calculate the amount of benefit that would be gotten from choosing the option. 4. See if the benefits outweigh the costs to make a decision.
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Put the steps of the sample cost-benefit analysis below to show the correct order of this decision-making process.
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1. Consider whether or not to spend money on a new car. 2. Figure out how much it will cost to buy and operate a car. 3. Calculate the amount of benefit that would be gotten from choosing the option. 4. See if the benefits outweigh the costs to make a decision.
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Put the steps below in the correct order to show how a cost-benefit analysis is done.
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1. Be presented with a decision. 2. List the costs of the decision. 3. Figure out all of the benefits of the decision. 4. Compare costs and benefits to see which is bigger.
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Because costs and benefits are both subjective, a calculation of the value of a decision is always based on what?
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Personal opinion
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Because costs and benefits are both subjective, a person's decision will always be based on what?
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His or her unique values and beliefs
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People come to different decisions using cost-benefit analysis even under the same conditions because costs and benefits are both what?
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Subjective
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Besides tuition, what is one cost of attending college?
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Missed opportunities to earn income
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What is one of the monetary benefits of attending college?
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Increased earning potential in the future
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What is one of the non-monetary benefits of attending college?
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The ability to choose a satisfying job
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Which of the following describes what a lease is?
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Contract
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When you rent an apartment, you make a monthly payment to whom?
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A landlord
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A lease is an agreement that renters make with whom?
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Landlord
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In addition to rent, people who live in apartments often have to pay for what?
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Utility bills
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Which of the following are not expenses that apartment dwellers have to pay?
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The mortgage
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Which of these helps a landlord pay for damage that renters cause to their apartments?
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Security deposit
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How can a renter reduce the amount of money he or she spends on monthly rent?
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By getting roommates
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Which of these can help reduce the total cost of living in an apartment?
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Finding a roommate
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What is one way to make the rent on an apartment less expensive? Feedback
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Getting a roommate
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Match each type of insurance with what the insurance company pays for if there's a loss. A. Auto insurance B. Renter's insurance C. Life insurance D. Health insurance
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C. Money for relatives of someone who dies A. Repairs on damaged vehicles B. Replacement of stolen personal possessions D. Visits to the doctor or hospital
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Match each type of insurance with what it covers. A. Auto insurance B. Disability insurance C. Renter's insurance D. Health insurance
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B. Wages lost because of injury or illness A. Repairs on damaged vehicles D. Visits to the doctor or hospital C. Stolen personal possessions
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Match each type of insurance with an example of when your insurance company would make a payment. A. Auto insurance B. Disability insurance C. Homeowner's insurance D. Health insurance
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B. An injury that causes you to lose wages D. An illness that involves a trip to the doctor C. A fire in your house that damages your personal possessions A. An accident that damages your vehicle
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When an insurance policy covers replacement value, a loss results in a settlement that pays for what?
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Brand new items to replace the items lost
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What kind of insurance provides replacement value for personal possessions?
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Renter's insurance
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What does homeowner's insurance pay for in case of damage to your house and its contents?
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Rebuilding the house and buying all new items to replace those damaged
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What does liability insurance cover?
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The medical and car repair bills for anyone else involved in an accident you caused
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What does collision coverage insure?
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The repair of damage caused to your car when you caused the accident
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What does medical coverage on an auto insurance policy cover?
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Medical bills for yourself and anyone else in your car in case of an accident
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What is a health insurance deductible?
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The amount of a doctor visit charge that isn't covered by insurance
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What is a co-pay?
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A small payment for a visit to a doctor
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What kind of health insurance involves a co-pay for doctor visits?
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Managed care
