I just want to check my reasoning on this one question:
Prove that if K is a compact subset of the real line, the measure of K is finite.
I am assuming this is simply because compact sets are closed and closed sets have finite outer measures. Is this correct or am I oversimplifying?
You’re not oversimplifying; you’re simplifying in the wrong direction. Compact sets are closed and bounded but it is the boundedness you need here. (The closedness happens to be irrelevant.) Boundedness means there is an $M$ such that $K\subset[-M,M]$. By the monotonicity of measures, $$\mu(K)\leq\mu([-M,M])=2M<\infty.$$