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Spending - Head Matters
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1. The most effective way to shop for the best price is to:
Compare and shop around.
Make your purchases online.
Find a sale at the store nearest to you.
2. Which is an example of a “perceived” but often not real quality that affects the price of a product?
The expense of the materials used in making the product.
The marketing and brand name of the product.
How long the product will last.
3. True or False: When deciding which items to buy, focusing on your needs instead of your wants can lead to better buying decisions.
True
False
4. If you are buying new clothes, which of the following would be considered a want and not a need?
Size
Cool brand
Comfort
5. Which of the following is an example of unit price?
Cost of each piece of gum in the pack.
Cost of the tax charged on a pack of gum.
Cost of a pack of gum.
6. True or False: Buying items in bulk will always save you money.
True
False
7. Where can you find unit prices in a grocery store?
On the back of the product itself.
Printed on a label on the shelves below the product.
At the customer service desk.
8. The key advantage of buying an item instead of borrowing to buy, leasing, or renting it is:
It is the lowest cost option since no interest is paid.
You get the item right away.
It is easier to return the item.
9. True or False: If you are leasing an item, at the end of the lease term you become the owner of the item.
False
True
10. Why is it a good idea to keep your receipts?
You’ll need them if you want to return or exchange something.
All of the answers are correct.
They can be used as proof of purchase for warranties.
They’ll help keep your budget accurate and current.
11. When creating a spending plan, it is important to consider:
Every dollar you spend in a month, since even small things add up.
Only the money you spend on the things you need, not the things you want.
Only major purchases over $50.
12. What is the name of a law that establishes standards for when vehicles and other products should be repurchased or replaced?
Anti-Junk law.
Lemon law.
Statute of limitations.
Make-My-Day law.
13. True or False: The Cooling-Off Rule applies to any sales transaction, regardless of where it takes place.
False
True
14. Which of the following is not considered an exception under the Cooling Off Rule?
Sales that are under $25.
Sales that are made entirely by mail or telephone.
Sales that take place at the buyer’s home.
15. True or False: Going with your gut is usually the best way to make a purchasing decision.
False
True
16. Under the Federal Trade Commission Act, advertising must:
Must have evidence to back up its claims.
Cannot be unfair.
All of the answers are correct.
Be truthful and non-deceptive.
17. What is bait and switch?
A deceptive advertising tactic that is illegal.
A legal way for an advertiser to persuade you to pay more for an item through high-pressure sales.
A way to catch fish.
18. What should you do if you think an ad is deceptive?
Contact the company that is running the ad to complain.
File a complaint with the Better Business Bureau.
Nothing, there is no way to prove ads are deceptive.
19. What is opportunity cost?
The cost of the option that you choose.
The monthly payments you make to an education savings plan.
The most valued option that you refuse because you choose something else.
20. True or False: A possible opportunity cost of saving your income is that you will enjoy fewer goods and services today.
False
True
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