Making Decisions Quiz
1. The decision-making process starts with gathering information.
True
False
2. Procrastination is an example of an economic influence on decision making.
True
False
3. Higher interest rates result in higher costs of borrowing money.
True
False
4. Rising prices causing lower buying power is referred to as an inflation risk.
True
False
5. Interest earned on savings may be referred to as the "time value of money."
True
False
6. The final step of the decision-making process is:
evaluating the results.
gathering information.
identifying the problem.
selecting the best course of action.
7. Changes in the buying power of the dollar are measured by:
the unemployment rate
the money supply.
the consumer price index.
interest rates.
8. Consumer spending is likely to rise when:
unemployment is high.
interest rates are low.
taxes rise.
people are putting more money into savings accounts.
9. Investments that may be difficult to convert to cash quickly have a high (fill in the blank) risk.
inflation
economic
income
liquidity
10. What a person gives up when making a decision is commonly called:
the time value of money.
a personal risk.
an opportunity cost.
spontaneity.
MAKING DECISIONS QUIZ ANSWERS
- True
- True
- True
- True
- True
- evaluating the results
- the Consumer Price Index
- interest rates are low
- liquidity
- an opportunity cost
