Question 1

An implied warranty is usually in written form.

Accepted Answer

A) True 
 B)False

Question 2

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 fraudF) A) and E)
G) A) and B)

Question 3

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)   $10,400F) A) and C)
G) A) and B)

Question 4

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.F) B) and D)
G) A) and E)

Question 5

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.F) A) and D)
G) A) and B)

Question 6

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 7

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 CommissionF) A) and B)
G) B) and D)

Question 8

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 ActF) None of the above
G) B) and E)

Question 9

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 10

____________ 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)   HypermarketsF) A) and B)
G) B) and D)

Question 11

____________ is considered a variable operating expense of an automobile.

Accepted Answer

A)   Depreciation
B)   Interest on auto loan
C)   Insurance
D)   Registration fee
E)   MaintenanceF) A) and D)
G) C) and D)

Question 12

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 groupF) A) and E)
G) B) and E)

Question 13

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 selectionF) D) and E)
G) All of the above

Question 14

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 nameF) A) and C)
G) B) and D)

Question 15

What factors influence most people's buying decisions?

Accepted Answer

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

Question 16

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.F) B) and E)
G) A) and C)

Question 17

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)   $2,720F) A) and B)
G) C) and E)

Question 18

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 19

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.F) A) and B)
G) C) and D)

Question 20

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.F) None of the above
G) B) and D)

Exam 8: Consumer Purchasing Strategies and Legal Protection

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

Correct AnswerverifiedShow Answer

An implied warranty is usually in written form.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The sticker price of a car refers to:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following information is required on food labels?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Which type of purchasing strategy involves comparing unit prices?

Correct AnswerverifiedShow Answer

A Whirlpool dishwasher is an example of a:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

____________ 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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerAnswered by ExamLex AIFour common consumer myths include:1. ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

____________ is considered a variable operating expense of an automobile.

Correct AnswerverifiedShow Answer

What factors influence most people's buying decisions?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Four common consumer myths include:

1. ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified