Test Your Knowledge Lesson 1: Katrina Strikes

1
Test Your KnowledgeLesson 1 Katrina Strikes

• Click on the letter of your choice to test your
  understanding.

2
Question 1
Lesson 1 Katrina Strikes

• Natural disasters

3
Correct!
Lesson 1 Katrina Strikes

• The U.S. Department of health and human services
  defines natural disasters as naturally occurring
  events that can cause severe threats to the
  public health. Tornadoes, hurricanes, volcanoes,
  and earthquakes are all examples of natural
  disasters.

Next
4
Try again!
Lesson 1 Katrina Strikes

• Although natural disasters do cause severe
  threats, they occur in areas other than just
  coastal regions.

Back
5

Lesson 1 Katrina Strikes
Try again!

• Some natural disasters create dangerous
  conditions and do involve rain and wind, but the
  definition applies more broadly to naturally
  occurring events.

Back
6
Question 2
Lesson 1 Katrina Strikes

• In managing risk, you must choose to

7
Try again!
Lesson 1 Katrina Strikes

• While it may be important to plan, prepare, and
  predict, there is an even more important set of
  options related to risk management.

Back
8
Correct!
Lesson 1 Katrina Strikes

• To manage risk, you must choose to accept, avoid,
  reduce, or transfer the risk. When you live in an
  area that is prone to natural disasters, you are
  accepting the risk. You can avoid the risk by
  moving from the area. Settling farther inland
  could help reduce your risk of experiencing a
  hurricane, for instance. Purchasing property
  insurance helps to transfer the risk.

Next
9
Try again!
Lesson 1 Katrina Strikes

• Although implementing, reviewing, revising, and
  repeating are important steps related to goals,
  there is another set of options related to risk
  management.

Back
10
Question 3
Lesson 1 Katrina Strikes

• An emergency fund should be a minimum of

11
Try again!
Lesson 1 Katrina Strikes

• While having enough money to cover two months of
  living expenses is a good start to an emergency
  fund, the recommended amount is actually higher.

Back
12
Lesson 1 Katrina Strikes
Correct!

• Having an emergency fund can be vital not only
  when you are dealing with natural disasters, but
  also when you are dealing with unexpected life
  situations such as a job loss. Most people should
  have an emergency fund equal to three to six
  months of their living expenses.

Next
13
Try again!
Lesson 1 Katrina Strikes

• Having nine to twelve months of living expenses
  would certainly be a positive accomplishment it
  is above the recommended level for an emergency
  fund.

Back
14
Question 4
Lesson 1 Katrina Strikes

• Goals are categorized as

15
Try again!
Lesson 1 Katrina Strikes

• Scarcity involves the concepts of unlimited wants
  and limited resources, but goals are categorized
  in a different way.

Back
16
Correct!
Lesson 1 Katrina Strikes

• Goals are generally classified into three
  categories short term (less than one year),
  intermediate term (one to five years), and long
  term (five years or more).

Next
17
Try again!
Lesson 1 Katrina Strikes

• In making decisions, people must weigh the costs
  and benefits. Goals are categorized in a
  different way.

Back
18
Lesson 1 Katrina Strikes
Question 5

• SMART Goals are

19
Correct!
Lesson 1 Katrina Strikes

• Specific Goals are clear, unambiguous, and tell
  exactly who, what, why, and when.
• Measurable They provide concrete criteria for
  determining whether they have been accomplished.
• Attainable They are achievable, though achieving
  them may be a stretch.
• Realistic You are willing and able to work
  toward achieving the goals.
• Time bound They are grounded in a time frame.

Next
20
Lesson 1 Katrina Strikes
Try again!

• SMART goals are Specific, Attainable, Realistic,
  Time bound, but the M stands for something else.

Back
21
Try again!
Lesson 1 Katrina Strikes

• SMART goals are Specific, Attainable, Realistic,
  Time bound, but the M stands for something else.

Back
22
Question 6
Lesson 1 Katrina Strikes

• With goals, it is important to

23
Try again!
Lesson 1 Katrina Strikes

• While it may be important to plan, prepare, and
  predict, there is an even more important set of
  steps related to implementing a goal.

Back
24
Try again!
Lesson 1 Katrina Strikes

• Goals are not meant to be rigid and inflexible.
  While it may be important to stay the course and
  work toward a goal, there is an even more
  important set of steps related to implementing a
  goal.

Back
25
Correct!
Lesson 1 Katrina Strikes

• Implement, review, revise, repeat!
• Goals are not meant to be rigid and inflexible.
  As you implement your plan, review the plan as
  necessary to be sure it is working. Revise the
  plan as needed to accommodate the current
  situation. Repeat the process implement the new
  plan, then review, revise, repeat.

Next
26
Lesson 1 Katrina Strikes
Question 7

• In differentiating between wants and needs, we
  commonly say that

27
Lesson 1 Katrina Strikes
Correct!

• Basic needs are necessary in order to live, and
  wants are things that we would like or desire.
  Our needs include air, food, water, shelter, and
  clothing. Wants vary by individual but may
  include items such as video games, phones, and
  ipads.

Next
28
Try again!
Lesson 1 Katrina Strikes

• It may be necessary to have our basic needs met
  in order to live productive lives, but we may be
  able to do without the wants.

Back
29
Try again!
Lesson 1 Katrina Strikes

• While we may really want certain items, such as
  video games, phones, and iPads, they are not
  essential to our everyday survival.

Back
30
Lesson 1 Katrina Strikes
Question 8

• Scarcity involves

31
Try again!
Lesson 1 Katrina Strikes

• While we may have unlimited wants, that is only
  part of scarcity, and unfortunately there are not
  unlimited resources.

Back
32
Try again!
Lesson 1 Katrina Strikes

• Most people do not have limits to their wants. In
  fact, wants can be unlimited. Resources, on the
  other hand, are not unlimited.

Back
33
Correct!
Lesson 1 Katrina Strikes

• Scarcity occurs because human wants are greater
  than the capacity of available resources to
  provide for those wants. To put it simply, we
  have unlimited wants and limited resources. As a
  result, we must prioritize and make decisions.

Next
34
Lesson 1 Katrina Strikes
Question 9

• An opportunity cost is

35
Try again!
Lesson 1 Katrina Strikes

• Remember, opportunity cost involves a single
  alternative, not all alternatives given up.

Back
36
Try again!
Lesson 1 Katrina Strikes

• The alternative that is selected is called the
  decision or the choice, not the opportunity cost.

Back
37
Correct!
Lesson 1 Katrina Strikes

• An opportunity cost is the highest-valued
  alternative that is given up when a decision is
  made. For example, when a student graduates, he
  may make the decision to get a job. In that case,
  his opportunity cost may be not going to college.

Next
38
Lesson 1 Katrina Strikes
Question 10

• People make decisions by

39
Try again!
Lesson 1 Katrina Strikes

• When making a decision, people consider the
  short-, intermediate-, and long-term costs and
  benefits.

Back
40
Try again!
Lesson 1 Katrina Strikes

• When making a decision, people select the
  alternative for which they perceive the most
  (rather than least) benefits relative to the
  costs.

Back
41
Correct!
Lesson 1 Katrina Strikes

• People make decisions by weighing the costs
  (negative outcomes) and benefits (positive
  outcomes) of alternatives. People select the
  alternative for which they perceive the most
  benefits relative to the costs.
•  

Next
42
Thank you for participating in Test Your
Knowledge
Lesson 1 Katrina Strikes