|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Why are expensive convenience foods considered to be a work expense?
(a) People are too tired after work to make dinner.
(b) Factories employ people to produce convenience foods.
(c) Unemployed people cannot afford convenience foods.
(d) Convenience foods promote life energy.
2. What do advertisements teach Americans?
(a) Consume, consume, and comsume some more.
(b) Work, work, and work some more.
(c) Relax, relax, and relax some more.
(d) Buy low, sell high.
3. What is Step 1, Part 2 of the program?
(a) Determine how much money has been earned so far in a lifetime.
(b) List everything owned.
(c) Declutter the garage and basement.
(d) Determine net worth.
4. Why are vacations considered to be a work expense?
(a) Most employees take laptops or cell phones on vacation.
(b) Only employed individuals can afford vacations.
(c) They are necessary to relieve work-related stress.
(d) They are required by law.
5. What will eventually run out?
(a) The earth's resources.
(b) Job growth.
(c) Time and money.
(d) Social Security.
6. Why do many people give up time with family, working on hobbies, and fulfilling dreams?
(a) They are insecure.
(b) They are too busy working.
(c) They are lazy.
(d) They fear success.
7. What three columns should record-keeping include?
(a) Salary, gifts, and prizes.
(b) Necessities, luxuries, and expenses to eliminate.
(c) Income, expenditures, and hours of life energy spent.
(d) Gross income, life energy spent, and expenses to eliminate.
8. What is the state of having enough to spend in order to purchase just enough?
(a) The bottom of the fulfillment curve.
(b) The peak of the success spectrum.
(c) The middle of the success spectrum.
(d) The peak of the fulfillment curve.
9. For Question 3 under what circumstance would one enter a minus sign on the chart?
(a) If the expense category will most likely cease after retirement.
(b) If monthly expenses exceed monthly income.
(c) If the expense category does not fit with values.
(d) If that expense category will most likely be reduced after retirement.
10. What is the final part of Step 3?
(a) Figuring out how much life energy remains.
(b) Figuring out how much life energy went into each expenditure.
(c) Determining net worth.
(d) Choosing expenses to eliminate.
11. Each person has only a limited amount of what?
(b) Intrinsic value.
(c) Emotional energy.
(d) Life energy.
12. What causes emptiness?
(a) After spending time with family, the temporary happiness fades.
(b) Spending too much time on leisure activities.
(c) Losing a job.
(d) After buying a new item, the temporary happiness fades.
13. What is the first half of Step 2?
(a) Determine real hourly wage.
(b) Not feeling shame or blame.
(c) Determine net worth.
(d) Determine real hours worked.
14. How should people reduce spending?
(a) By increasing awareness of how much life energy it takes to pay for each expense.
(b) By putting money in the bank.
(c) By staying home.
(d) By taking a lower-paying job.
15. What is the purpose of dividing income and expenses into categories?
(a) To determine if enough money will be available for retirement.
(b) To determine net worth.
(c) To judge whether expenses are worth the life energy spent.
(d) To decide if a career change is warranted.
Short Answer Questions
1. Why should readers not use premade categories from other budget books?
2. Most Americans divide their discretionary time equally between what two activities?
3. What must a person do to become financially independent?
4. Which of the following does the cultural perspective of money include?
5. What have many people been told by parents and guidance counselors?
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