Unit 2: T/F & M/C

Cost-push inflation occurs when cost increases are not offset with greater output that lowers the cost of each unit made.

• True

• False

The U.S. government measures inflation using tools such as the Consumer Price Index. True or False?

• True

• False

Basic needs include items that make life more enjoyable, such as a television.

• True

• False

The term wants refers to items people desire for reasons beyond survival and basic comfort.

• True

• False

Financial resources are money or other items of value that people can use to acquire goods and services.

• True

• False

Consumers should always make quick decisions about financial matters; otherwise, opportunities can be lost.

• True

• False

Spreadsheet software, such as Microsoft Excel, can be used to create a budget.

• True

• False

A person’s actual income, saving, and spending may not be exactly as planned on a budget.

• True

• False

The first step in preparing a budget is to plan the amount you will save each month.

• True

• False

When your estimated expenses are less than your actual expenses, the result is an unfavorable variance. True or False?

• True

• False