Question 1

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

Question 2

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.

Question 3

Open dating information provides consumers with information about the freshness of a perishable product.

Accepted Answer

A) True 
 B)False

Question 4

What type of warranty covers only certain aspects of the product,such as parts,or requires the buyer to incur part of the costs for shipping or repairs?

Accepted Answer

A)  Limited warranty
B)  Full warranty
C)  Implied warranty
D)  Warranty of title
E)  Express warranty

Question 5

Gina Raffetto's car broke down on the way to work,and her mechanic has told her that the car cannot be fixed.Gina drives 30 miles one way to work each day.There is no reliable bus or train transportation that goes anywhere near her work.Gina decides she needs a car for reliable transportation to work.What step in the purchasing process is Gina carrying out?

Accepted Answer

A)  Problem identification
B)  Information gathering
C)  Evaluating alternatives
D)  Determining the purchase price
E)  Post purchase activities

Question 6

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.

Question 7

An example of a financial services cooperative is a:

Accepted Answer

A)  credit union.
B)  sports store.
C)  grocery store.
D)  pawnshop.
E)  payday loan company.

Question 8

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

Question 9

Lorenzo Clowder has settled on purchasing a new Honda Accord and has found that the suggested retail price is $22,200 and that the dealer's invoice price is $19,980.It is time for him to go to a dealer and negotiate the price he will pay for his new car.What step in the purchasing process is Lorenzo carrying out?

Accepted Answer

A)  Problem identification
B)  Information gathering
C)  Evaluating alternatives
D)  Determining the purchase price
E)  Post purchase activities

Question 10

Which of the following is usually the largest fixed expense for a new vehicle?

Accepted Answer

A)  Insurance
B)  Gasoline
C)  Registration, license, and fees
D)  Parking
E)  Depreciation

Question 11

What factors influence most people's buying decisions?

Accepted Answer

Consumer purchasing is frequently influe...

Question 12

Private label products are those that:

Accepted Answer

A)  are sold as government surplus.
B)  require nutritional labeling information.
C)  provide freshness information on the package.
D)  are distributed by all national chain stores.
E)  are sold by one chain of stores.

Question 13

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)  Taxes paid on purchases
C)  Money spent by stores on advertising
D)  Time and effort spent comparing prices
E)  Efforts by the government to prevent consumer fraud

Question 14

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

Question 15

Which one of these statements best describes a criticism of service contracts?

Accepted Answer

A)  Repair companies provide poor service.
B)  Service contracts are included in the initial price of the product and thus are not optional.
C)  The government regulation of service contract companies is weak.
D)  The contracts do not always include everything you might expect.
E)  There are a limited number of authorized repair facilities.

Question 16

The main purpose of Consumers Union is to:

Accepted Answer

A)  report the quality of products and services.
B)  reduce fire hazards of home appliances.
C)  handle consumer complaints from government workers.
D)  represent the government in consumer complaint hearings.
E)  provide environmental information on automobiles.

Question 17

Which of the following is usually not in written form?

Accepted Answer

A)  express warranty
B)  general warranty
C)  product warranty
D)  implied warranty
E)  specific warranty

Question 18

____________ are non-profit stores organized 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

Question 19

The purpose of an automobile service contract is to:

Accepted Answer

A)  reduce operating costs of the vehicle.
B)  cover regular maintenance.
C)  provide automobile insurance at a discount.
D)  cover certain repair costs after the warranty expires.
E)  stay informed of government safety recalls.

Question 20

The process of resolving conflicts between a customer and a business with the use of a third party whose recommendations are non-binding is called:

Accepted Answer

A)  mediation.
B)  arbitration.
C)  a class action suit.
D)  a product lawsuit.
E)  a small claims court hearing.

Exam 8: Consumer Purchasing Strategies and Legal Protection

What factors influence most people's buying decisions?

Correct Answer
verified
Consumer purchasing is frequently influe...
View Answer

Correct Answer
verified

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

Correct Answer
verified

Open dating information provides consumers with information about the freshness of a perishable product.

Correct Answer
verified

Private label products are those that:

Correct Answer
verified

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 Answer
verified

The process of resolving conflicts between a customer and a business with the use of a third party whose recommendations are non-binding is called:

Correct Answer
verified

The purpose of an automobile service contract is to:

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

The main purpose of Consumers Union is to:

Correct Answer
verified

Which one of these statements best describes a criticism of service contracts?

Correct Answer
verified

An example of a financial services cooperative is a:

Correct Answer
verified

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

Correct Answer
verified

____________ are non-profit stores organized 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 Answer
verified

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 Answer
verified

Which of the following is usually the largest fixed expense for a new vehicle?

Correct Answer
verified

What type of warranty covers only certain aspects of the product,such as parts,or requires the buyer to incur part of the costs for shipping or repairs?

Correct Answer
verified

Which of the following is usually not in written form?

Correct Answer
verified

Exam 8: Consumer Purchasing Strategies and Legal Protection

What factors influence most people's buying decisions?

Correct AnswerverifiedConsumer purchasing is frequently influe...View AnswerShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Open dating information provides consumers with information about the freshness of a perishable product.

Correct AnswerverifiedShow Answer

Private label products are those that:

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 process of resolving conflicts between a customer and a business with the use of a third party whose recommendations are non-binding is called:

Correct AnswerverifiedShow Answer

The purpose of an automobile service contract is to:

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

Correct AnswerverifiedShow 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

The main purpose of Consumers Union is to:

Correct AnswerverifiedShow Answer

Which one of these statements best describes a criticism of service contracts?

Correct AnswerverifiedShow Answer

An example of a financial services cooperative is a:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

____________ are non-profit stores organized 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

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 of the following is usually the largest fixed expense for a new vehicle?

Correct AnswerverifiedShow Answer

What type of warranty covers only certain aspects of the product,such as parts,or requires the buyer to incur part of the costs for shipping or repairs?

Correct AnswerverifiedShow Answer

Which of the following is usually not in written form?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Consumer purchasing is frequently influe...
View 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
verified

Correct Answer
verified

Correct Answer
verified