Financial Planning Helps Us

question 2

Multiple Choice

Financial planning helps us:

• A) control inflation.
• B) have flexibility to handle job loss.
• C) control unemployment rates.
• D) obtain a Social Security number.
• E) decrease national debt.

---

Definitions:

Over-optimism

The tendency to overestimate the likelihood of positive outcomes in the future.

Consumer

An individual or group that purchases goods or services for personal use.

Perceived Budget Line

A graphical representation of all possible combinations of goods that a consumer can purchase with a given budget, based on their perception of available resources.

Equilibrium

A state in which economic forces such as supply and demand are balanced and in the absence of external influences, the values of economic variables will not change.