|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. 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.
2. Why do many people give up on their dreams?
(a) People dream when they sleep too many hours per night.
(b) Dreams may not be practical and often do not fit in with reality.
(c) They believe dreams have no meaning.
(d) They believe dreams use life energy.
3. What should the amount started with at the beginning of the month, plus total income, minus total expenses equal?
(a) Net worth.
(b) The amount shown on a bank statement.
(c) The amount of money they have left at the end of the month.
(d) Gross income.
4. Most Americans divide their discretionary time equally between what two activities?
(a) Leisure and retirement.
(b) Working and spending.
(c) Eating and drinking.
(d) Family and friends.
5. What does Question 2 help people to figure out?
(a) Life energy spent.
(b) How will expenses change after retirement?
(c) How well they are doing at moving toward their purpose.
(d) Whether income exceeds expenses.
6. What are "gazingus pins?"
(a) Larger-than-standard pins.
(b) Any items the reader has an unreasonable amount of, due to habitual shopping.
(c) Pins to attach to a spending chart to indicate unnecessary expenses.
(d) Clips to attach spending charts to refrigerators or bulletin boards.
7. What is a possible advantage of switching to a lower-paying job?
(a) Ultimately earning more for each hour of life energy spent.
(b) More time available for continuing education.
(c) Less money available to spend.
(d) Less life energy spent equals a longer lifespan.
8. What broad category are alcohol and tobacco subcategories of?
(a) Acceptable expenses.
(b) Forbidden expenses.
(c) Occasional expenses.
(d) Recreational expenses.
9. What causes people to believe that "growth is good" and "more is better?"
(a) Fear of inflation, recession, and depression.
(b) Personal responsibility.
(c) Intrinsic value of money.
(d) Emotional and psychological perspective of money.
10. Where do values come from?
(a) Bargain hunting.
(b) Working harder.
(c) Saving money.
11. Earning, saving, and spending money are part of which perspective?
(b) Emotional and psychological.
(c) Life energy.
12. What is Question 3?
(a) How might this expenditure change if I did not have to work for a living?
(b) What are my dreams?
(c) Is income greater than expenses for the month?
(d) In how many years will I be able to retire?
13. What do the authors suggest that people divide their spending into?
(a) Categories that make sense for them.
(b) Three columns.
(c) Categories defined in Chapter 3.
(d) Categories determined by life energy.
14. How is a real hourly wage figured?
(a) Divide real hours worked by real pay.
(b) Divide real pay by real hours worked.
(c) Divide real hours worked by work expenses.
(d) Divide real pay by actual hours worked.
15. How is net worth determined?
(a) Estimated current sale price of all items currently owned, plus other assets such as cash and investments.
(b) Add together everything owned, then subtract everything owed.
(c) All items purchased during a lifetime.
(d) Multiply monthly income by 12.
Short Answer Questions
1. Where do most products we purchase end up?
2. What is one of the main economic principles most businesses follow?
3. Which of the following does the cultural perspective of money include?
4. What is the term for the unnecessary things, activities, and noise in our lives?
5. What are bare necessities, as defined in Chapter 1?
This section contains 575 words
(approx. 2 pages at 300 words per page)