1. TEST YOUR KNOWLEDGE LESSON 1: KATRINA STRIKES ABC

2. QUESTION 1 NATURAL DISASTERS: Are naturally occurring events that can cause severe threats to the public health. A Only occur in coastal regions and cause severe threats. Are known mainly for intense winds, significant rain, and dangerous conditions. Lesson 1: Katrina Strikes

3. CORRECT! 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 Lesson 1: Katrina Strikes

4. TRY AGAIN! Although natural disasters do cause severe threats, they occur in areas other than just coastal regions. Back Lesson 1: Katrina Strikes

5. Some natural disasters create dangerous conditions and do involve rain and wind, but the definition applies more broadly to naturally occurring events. Back Lesson 1: Katrina Strikes TRY AGAIN!

6. IN MANAGING RISK, YOU MUST CHOOSE TO: Plan, prepare, and predict the risk. A Accept, reduce, avoid, or transfer the risk. B Implement, review, revise, or repeat the risk. C Lesson 1: Katrina Strikes QUESTION 2

7. TRY AGAIN! While it may be important to plan, prepare, and predict, there is an even more important set of options related to risk management. Back Lesson 1: Katrina Strikes

8. 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 CORRECT! Lesson 1: Katrina Strikes

9. Although implementing, reviewing, revising, and repeating are important steps related to goals, there is another set of options related to risk management. Back TRY AGAIN! Lesson 1: Katrina Strikes

10. AN EMERGENCY FUND SHOULD BE A MINIMUM OF: 1-2 months of living expenses A 3-6 months of living expenses B 9-12 months of living expenses C QUESTION 3 Lesson 1: Katrina Strikes

11. 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 Lesson 1: Katrina Strikes TRY AGAIN!

12. 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 Lesson 1: Katrina Strikes CORRECT!

13. 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 Lesson 1: Katrina Strikes TRY AGAIN!

14. GOALS ARE CATEGORIZED AS: Limited and unlimited. A Short-, intermediate-, and long-term. B Costs and benefits. C Lesson 1: Katrina Strikes QUESTION 4

15. Scarcity involves the concepts of unlimited wants and limited resources, but goals are categorized in a different way. Back Lesson 1: Katrina Strikes TRY AGAIN!

16. 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 Lesson 1: Katrina Strikes CORRECT!

17. In making decisions, people must weigh the costs and benefits. Goals are categorized in a different way. Back Lesson 1: Katrina Strikes TRY AGAIN!

18. SMART GOALS ARE: Specific, Measurable, Attainable, Realistic, Time Bound. A Specific, Manageable, Attainable, Realistic, Time Bound. B Specific, Mentionable, Attainable, Realistic, Time Bound. C Lesson 1: Katrina Strikes QUESTION 5

19. 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 Lesson 1: Katrina Strikes CORRECT!

20. SMART goals are Specific, Attainable, Realistic, Time bound, but the M stands for something else. Back Lesson 1: Katrina Strikes TRY AGAIN!

21. SMART goals are Specific, Attainable, Realistic, Time bound, but the M stands for something else. Back Lesson 1: Katrina Strikes TRY AGAIN!

22. WITH GOALS, IT IS IMPORTANT TO: Plan, prepare, predict. A Hold steady, be rigid, keep the course. B Implement, review, revise, repeat. C Lesson 1: Katrina Strikes QUESTION 6

23. 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 Lesson 1: Katrina Strikes TRY AGAIN!

24. 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 TRY AGAIN! Lesson 1: Katrina Strikes

25. 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 Lesson 1: Katrina Strikes CORRECT!

26. IN DIFFERENTIATING BETWEEN WANTS AND NEEDS, WE COMMONLY SAY THAT: Basic needs are necessary to live, and wants are things that we would like or desire. A All needs and wants must be met in order to live productive lives. B It is more important to meet our wants than our needs. C Lesson 1: Katrina Strikes QUESTION 7

27. 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 Lesson 1: Katrina Strikes CORRECT!

28. 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 Lesson 1: Katrina Strikes TRY AGAIN!

29. While we may really want certain items, such as video games, phones, and iPads, they are not essential to our everyday survival. Back Lesson 1: Katrina Strikes TRY AGAIN!

30. SCARCITY INVOLVES: Unlimited wants and unlimited resources. A Limited wants and unlimited resources. B Unlimited wants and limited resources. C Lesson 1: Katrina Strikes QUESTION 8

31. While we may have unlimited wants, that is only part of scarcity, and unfortunately there are not unlimited resources. Back Lesson 1: Katrina Strikes TRY AGAIN!

32. Most people do not have limits to their wants. In fact, wants can be unlimited. Resources, on the other hand, are not unlimited. Back Lesson 1: Katrina Strikes TRY AGAIN!

33. 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 Lesson 1: Katrina Strikes CORRECT!

34. AN OPPORTUNITY COST IS: Every other alternative that is given up when a decision is made. A The alternative that is selected when a decision is made. B The highest-valued alternative that is given up when a decision is made C Lesson 1: Katrina Strikes QUESTION 9

35. Remember, opportunity cost involves a single alternative, not all alternatives given up. Back Lesson 1: Katrina Strikes TRY AGAIN!

36. The alternative that is selected is called the decision or the choice, not the opportunity cost. Back Lesson 1: Katrina Strikes TRY AGAIN!

37. 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 Lesson 1: Katrina Strikes CORRECT!

38. PEOPLE MAKE DECISIONS BY: Choosing the alternative with the least short-term costs. A Selecting the alternative for which they perceive the least benefits relative to the costs. B Weighing the costs and benefits of alternatives. C Lesson 1: Katrina Strikes QUESTION 10

39. When making a decision, people consider the short-, intermediate-, and long-term costs and benefits. Back Lesson 1: Katrina Strikes TRY AGAIN!

40. When making a decision, people select the alternative for which they perceive the most (rather than least) benefits relative to the costs. Back Lesson 1: Katrina Strikes TRY AGAIN!

41. 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 Lesson 1: Katrina Strikes CORRECT!

42. THANK YOU FOR PARTICIPATING IN “TEST YOUR KNOWLEDGE” Lesson 1: Katrina Strikes