Question 1

Which type of purchasing strategy involves comparing unit prices?

Accepted Answer

A)  Timing purchases 
B)  Price comparison 
C)  Label information 
D)  Brand comparison 
E)  Store selection 
A)  Timing purchases 
B)  Price comparison 
C)  Label information 
D)  Brand comparison 
E)  Store selection

Question 2

The purpose of the invoice price is to inform customers of the:

Accepted Answer

A)  sales tax on the vehicle. 
B)  suggested retail price. 
C)  sticker price. 
D)  charge for optional extras. 
E)  dealer's cost. 
A)  sales tax on the vehicle. 
B)  suggested retail price. 
C)  sticker price. 
D)  charge for optional extras. 
E)  dealer's cost.

Question 3

A credit purchase with 24 monthly payments of $78 and a down payment of $120 would have a total cost of:

Accepted Answer

A)  $1,632. 
B)  $1,752. 
C)  $1,872. 
D)  $1,992. 
E)  $2,120. 
A)  $1,632. 
B)  $1,752. 
C)  $1,872. 
D)  $1,992. 
E)  $2,120.

Question 4

Tiffany Parrish has purchased a new car. Since then she has had to make six trips to the dealer in four weeks to fix several major problems without much luck. She knows that she is entitled to a refund. What type of law gives her the right to ask for a refund?

Accepted Answer

A)  Lemon Law 
B)  Truth in Lending 
C)  Truth in Saving 
D)  Fair reporting 
E)  Consumer Credit Act 
A)  Lemon Law 
B)  Truth in Lending 
C)  Truth in Saving 
D)  Fair reporting 
E)  Consumer Credit Act

Question 5

Which one of the following is the best example of a personal opportunity cost associated with a consumer purchase?

Accepted Answer

A)  Enjoyment derived from owning an item 
B)  Discount received for paying cash 
C)  Money spent by stores on advertising 
D)  Time spent comparing prices 
E)  Efforts by the government to prevent consumer fraud 
A)  Enjoyment derived from owning an item 
B)  Discount received for paying cash 
C)  Money spent by stores on advertising 
D)  Time spent comparing prices 
E)  Efforts by the government to prevent consumer fraud

Question 6

An implied warranty is usually in written form.

Accepted Answer

A) True 
 B)False

Question 7

In most states, third-party debt collectors are permitted to call you during days, nights, weekends, and holidays until the debts you owe are repaid.

Accepted Answer

A) True 
 B)False

Question 8

A Whirlpool dishwasher is an example of a:

Accepted Answer

A)  national brand. 
B)  store brand. 
C)  generic brand. 
D)  local brand. 
E)  regional brand. 
A)  national brand. 
B)  store brand. 
C)  generic brand. 
D)  local brand. 
E)  regional brand.

Question 9

A motor vehicle has annual depreciation of $2,000; oil changes cost $120, automobile insurance $500 annually, and license plates costs $100. What is the annual amount of the total fixed operating cost for this vehicle?

Accepted Answer

A)  $2,000 
B)  $2,120 
C)  $2,500 
D)  $2,600 
E)  $2,720 
A)  $2,000 
B)  $2,120 
C)  $2,500 
D)  $2,600 
E)  $2,720

Question 10

The sticker price of a car refers to:

Accepted Answer

A)  the amount of government taxes on a new car. 
B)  the cost of repairing a used car which is for sale. 
C)  the list of optional equipment that may be added to a car. 
D)  the suggested retail price of a new car. 
E)  a comparison of costs and performance of comparable cars. 
A)  the amount of government taxes on a new car. 
B)  the cost of repairing a used car which is for sale. 
C)  the list of optional equipment that may be added to a car. 
D)  the suggested retail price of a new car. 
E)  a comparison of costs and performance of comparable cars.

Question 11

____________ are non-profit stores created by people in a neighborhood to serve their customers, who are also called members. Prices at this type of store are usually lower than at other retailers.

Accepted Answer

A)  Cooperatives 
B)  Warehouse stores 
C)  Factory outlets 
D)  Catalog showrooms 
E)  Hypermarkets 
A)  Cooperatives 
B)  Warehouse stores 
C)  Factory outlets 
D)  Catalog showrooms 
E)  Hypermarkets

Question 12

Describe four common consumer myths and explain the dangers of such erroneous beliefs. Why do you think they continue to be believed by many consumers? Offer suggestions for ways to increase consumer awareness of such myths.

Accepted Answer

Four common consumer myths include:

1.

Question 13

A social factor that would influence a consumer's buying decision would be the hobbies and interests they have.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a social factor that would influence a consumer buyer's decision?

Accepted Answer

A)  Lifestyle 
B)  Hobbies 
C)  Marital status 
D)  Culture 
E)  Peer group 
A)  Lifestyle 
B)  Hobbies 
C)  Marital status 
D)  Culture 
E)  Peer group

Question 15

Which organization specializes in the testing of products for electrical and fire safety?

Accepted Answer

A)  Consumers Union 
B)  Better Business Bureau 
C)  Consumer Product Safety Commission 
D)  Underwriters Laboratories 
E)  Federal Trade Commission 
A)  Consumers Union 
B)  Better Business Bureau 
C)  Consumer Product Safety Commission 
D)  Underwriters Laboratories 
E)  Federal Trade Commission

Question 16

What factors influence most people's buying decisions?

Accepted Answer

The answer of What factors influence most people's buying decisions?...

Question 17

____________ is considered a variable operating expense of an automobile.

Accepted Answer

A)  Depreciation 
B)  Interest on auto loan 
C)  Insurance 
D)  Registration fee 
E)  Maintenance 
A)  Depreciation 
B)  Interest on auto loan 
C)  Insurance 
D)  Registration fee 
E)  Maintenance

Question 18

The expected value of a vehicle at the end of a lease is called the:

Accepted Answer

A)  residual value. 
B)  unit price. 
C)  sticker price. 
D)  capitalized cost. 
E)  money factor. 
A)  residual value. 
B)  unit price. 
C)  sticker price. 
D)  capitalized cost. 
E)  money factor.

Question 19

Isabel would spend $200 per week on groceries for her family if she did not use coupons. Her coupons save her 10 percent of that amount. She puts the amount saved into her savings account. How much will she have in her savings account at the end of the first year? Ignore interest earnings.

Accepted Answer

A)  $240 
B)  $200 
C)  $2,040 
D)  $1,040 
E)  $10,400 
A)  $240 
B)  $200 
C)  $2,040 
D)  $1,040 
E)  $10,400

Question 20

Which of the following information is required on food labels?

Accepted Answer

A)  Open dating 
B)  Unit pricing 
C)  Generic name 
D)  Common product name 
E)  Brand name 
A)  Open dating 
B)  Unit pricing 
C)  Generic name 
D)  Common product name 
E)  Brand name

Which type of purchasing strategy involves comparing unit prices?

The purpose of the invoice price is to inform customers of the:

A credit purchase with 24 monthly payments of $78 and a down payment of $120 would have a total cost of:

Tiffany Parrish has purchased a new car. Since then she has had to make six trips to the dealer in four weeks to fix several major problems without much luck. She knows that she is entitled to a refund. What type of law gives her the right to ask for a refund?

Which one of the following is the best example of a personal opportunity cost associated with a consumer purchase?

An implied warranty is usually in written form.

In most states, third-party debt collectors are permitted to call you during days, nights, weekends, and holidays until the debts you owe are repaid.

A Whirlpool dishwasher is an example of a:

A motor vehicle has annual depreciation of $2,000; oil changes cost $120, automobile insurance $500 annually, and license plates costs $100. What is the annual amount of the total fixed operating cost for this vehicle?

The sticker price of a car refers to:

____________ are non-profit stores created by people in a neighborhood to serve their customers, who are also called members. Prices at this type of store are usually lower than at other retailers.

Describe four common consumer myths and explain the dangers of such erroneous beliefs. Why do you think they continue to be believed by many consumers? Offer suggestions for ways to increase consumer awareness of such myths.

A social factor that would influence a consumer's buying decision would be the hobbies and interests they have.

Which of the following is not a social factor that would influence a consumer buyer's decision?

Which organization specializes in the testing of products for electrical and fire safety?

What factors influence most people's buying decisions?

____________ is considered a variable operating expense of an automobile.

The expected value of a vehicle at the end of a lease is called the:

Isabel would spend $200 per week on groceries for her family if she did not use coupons. Her coupons save her 10 percent of that amount. She puts the amount saved into her savings account. How much will she have in her savings account at the end of the first year? Ignore interest earnings.

Which of the following information is required on food labels?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 8: Consumer Purchasing Strategies and Legal Protection

Which type of purchasing strategy involves comparing unit prices?

The purpose of the invoice price is to inform customers of the:

A credit purchase with 24 monthly payments of $78 and a down payment of $120 would have a total cost of:

Tiffany Parrish has purchased a new car. Since then she has had to make six trips to the dealer in four weeks to fix several major problems without much luck. She knows that she is entitled to a refund. What type of law gives her the right to ask for a refund?

Which one of the following is the best example of a personal opportunity cost associated with a consumer purchase?

An implied warranty is usually in written form.

In most states, third-party debt collectors are permitted to call you during days, nights, weekends, and holidays until the debts you owe are repaid.

A Whirlpool dishwasher is an example of a:

A motor vehicle has annual depreciation of $2,000; oil changes cost $120, automobile insurance $500 annually, and license plates costs $100. What is the annual amount of the total fixed operating cost for this vehicle?

The sticker price of a car refers to:

____________ are non-profit stores created by people in a neighborhood to serve their customers, who are also called members. Prices at this type of store are usually lower than at other retailers.

Describe four common consumer myths and explain the dangers of such erroneous beliefs. Why do you think they continue to be believed by many consumers? Offer suggestions for ways to increase consumer awareness of such myths.

A social factor that would influence a consumer's buying decision would be the hobbies and interests they have.

Which of the following is not a social factor that would influence a consumer buyer's decision?

Which organization specializes in the testing of products for electrical and fire safety?

What factors influence most people's buying decisions?

____________ is considered a variable operating expense of an automobile.

The expected value of a vehicle at the end of a lease is called the:

Isabel would spend $200 per week on groceries for her family if she did not use coupons. Her coupons save her 10 percent of that amount. She puts the amount saved into her savings account. How much will she have in her savings account at the end of the first year? Ignore interest earnings.

Which of the following information is required on food labels?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters