1. The average cost of basic needs in a particular area is called the _________.

a. cost of living
b. opportunity cost
c. income
d. cost-benefit decision

2. What is disposable income?

a. the amount you earn that is taxed
b. payments for goods and services
c. the total income a person receives after paying taxes
d. a plan for spending and saving

3. If you want to save money for a vacation, you should create a(n) _________.

a. expense report
b. budget
c. cost of living
d. income

4. Typically, the more education you have the ___________.

a. higher your income
b. lower your income
c. more you like your job
d. less you like your job

5. When you weigh the future benefits of a product or service with its cost, you are making a __________.

a. cost-benefit decision
b. opportunity cost
c. disposable income decision
d. cost of living decision