True/False
Indicate whether the sentence or statement is true
or false. |
| | 1. | People buy
necessities with their disposable income. |
| | 2. | Where people
live can influence how much they earn. |
| | 3. | For a
consumer, decision making stops after he or she has bought an item. |
| | 4. | The time a
consumer spends in finding out about a product is an opportunity cost. |
| | 5. | All rational
consumers will make the same choices. |
| | 6. | The right to
be heard guarantees that legislators will listen to consumer interests. |
| | 7. | The ability
of consumers to collect money from a manufacturer in payment for damages caused by their products is
the right to redress. |
| | 8. | Better
Business Bureaus are private consumer groups that give consumers information on products and selling
practices. |
| | 9. | Private
consumer groups protect the interests of manufacturers. |
| | 10. | Consumers
who attempt to return a used item because it has been advertised elsewhere for a lower price exhibit
ethical behavior. |
Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question. |
| | 11. | American
consumers spend most of their money on a. | recreation. | c. | health and personal care. | b. | housing and
food. | d. | transportation. | | | | |
|
| | 12. | The first
decision a consumer must make is a. | whether or not to buy an item. | c. | whether the product has a warranty. | b. | what quality the
product should be. | d. | how to use the
product. | | | | |
|
| | 13. | All the
steps in consumer decision making involve a. | disposable income. | c. | luxury items. | b. | discretionary
income. | d. | opportunity
cost. | | | | |
|
| | 14. | A rational
choice involves choosing the a. | most expensive goods. | b. | least expensive goods,
regardless of quality. | c. | goods that you believe can best satisfy your
wants. | d. | goods that are highly advertised. | | |
|
| | 15. | Money that
is spent on luxury items or entertainment is a. | discretionary income. | c. | opportunity cost. | b. | disposable
income. | d. | highest alternative
choice. | | | | |
|
| | 16. | An ad that
appeals to emotions, but does not provide facts is an example of a. | bait and
switch. | c. | informative
advertising. | b. | competitive advertising. | d. | comparison shopping. | | | | |
|
| | 17. | Which of the
following is illegal? a. | selling generic brands | b. | bait and
switch | c. | developing a consumer knowledge base | d. | competitive
advertising | | |
|
| | 18. | The
opportunity cost of comparison shopping is the a. | time you could have spent doing something
else. | b. | price you pay for the item you choose. | c. | money advertisers spend
to attract your attention to their products. | d. | money you save by
making a rational choice. | | |
|
| | 19. | A wise
consumer makes a decision based on a. | competitive advertising. | c. | bait and switch. | b. | comparison
shopping. | d. | generic
names. | | | | |
|
| | 20. | Which of the
following is the most efficient method of gathering information? a. | listening to ads on the
radio | c. | making telephone
calls | b. | going to different stores | d. | browsing the Web | | | | |
|
| | 21. | Being
protected against goods that are dangerous to life or health is a consumer's a. | right to
choose. | c. | right to
safety. | b. | right to be heard. | d. | right to be informed. | | | | |
|
| | 22. | By giving
consumers the right to choose, the government a. | discourages competition. | b. | protects consumers in
markets where competition does not exist. | c. | makes consumers responsible for knowing whether advertising is
accurate. | d. | makes markets more competitive. | | |
|
| | 23. | If a product
is faulty, who is responsible for initiating the problem-solving process? a. | the
consumer | c. | the
manufacturer | b. | the government | d. | the seller | | | | |
|
| | 24. | Which of the
following is an example of consumer responsibility? a. | to test new
products | b. | to set requirements for automobile safety | c. | to learn as much as
possible about a product or service to be purchased | d. | to regulate labeling of
products | | |
|
| | 25. | Pointing out
that a cashier failed to charge you for an item is an example of a. | consumer
rights. | c. | right to
redress. | b. | consumer protection. | d. | ethical behavior. | | | | |
|
Completion
Complete each sentence or
statement. |
| 26. | Competitive
advertising is often used for well-established ____________________.
|
| 27. | If a faulty
product has a ____________________, the manufacturer or seller will repair or replace it within a
certain time period.
|
| 28. | It is
difficult to know who produced products that have ____________________.
|
| 29. | The value of
the time you spend _________________________ should not be greater than the value you receive from
making the best choice of product for yourself.
|
| 30. | From
_________________________, consumers can learn about the existence, price, quality, and special
features of products without spending much time.
|
Matching |
| | Match
each item with the correct statement below. a. | consumer | b. | disposable income | c. | discretionary
income | d. | rational choice | e. | opportunity
cost | | |
|
| | 31. | the value of
the highest alternative choice that a person did not make |
| | 32. | any person
or group that buys or uses goods and services to satisfy personal needs and wants |
| | 33. | choosing the
alternative that has the greatest value among comparable quality products |
| | 34. | money or
income a person has left to spend on extras after necessities have been bought |
| | 35. | income
remaining for a person to spend after all taxes have been paid |
| | Match
each item with the correct statement below. a. | bait and switch | b. | comparison
shopping | c. | warranty | d. | brand name | e. | generic brand | | |
|
| | 36. | promise made
by a manufacturer or seller to repair or replace a product within a certain time period if it is
found to be faulty |
| | 37. | word,
picture, or logo on a product that helps consumers distinguish it from similar products |
| | 38. | deceptive
advertising practice that attracts consumers with a low-priced product, then tries to sell them a
higher-priced product |
| | 39. | general name
for a product rather than a specific name given by the manufacturer |
| | 40. | getting
information on the types and prices of products available from different stores and
companies |
| | Match
each item with the correct statement below. a. | consumerism | b. | ethical behavior | c. | Better Business
Bureau | d. | Food and Drug Administration | e. | right to
redress | | |
|
| | 41. | private
consumer group that helps settle disagreements between buyers and sellers |
| | 42. | movement to
educate buyers about purchases and to demand safer products from manufacturers |
| | 43. | the ability
to obtain from manufacturers adequate payment for damages caused by their goods |
| | 44. | acting in
accordance with convictions about right and wrong |
| | 45. | federal
agency that protects the public against impure and unsafe foods, drugs, and cosmetics |