1. The 'snowball' metaphor used in this course best represents which of the following concepts:

Select one:

a. Your bank account balance at the end of the month.

b. Total income less expenses each month.

c. Total personal and investment income received each month.

d. The amount by which your bank balance increases each month.

2. Which of the following situations is MOST consistent with the concept of 'save to invest'?

Select one:

a. You start saving $100 a month to buy a new car.

b. You normally spend about $100 less than you earn each month and you invest it into a savings account to pay for your holiday at the end of the year.

c. You start setting aside $200 per month for a deposit on your first home.

d. You pay off the full balance of your credit card bill.

3. The main problem with the classical economics view of happiness or utility is that:

Select one:

a. people usually make judgments of happiness using comparisons (with others or some other 'status quo') rather than by taking stock of their own situation.

b. it assumes that people are like 'human calculators' who are able to calculate the utility of every option that they are facing.

c. money can't buy happiness.

d. more of a good thing is not always better.