2.8.F - Test 3: Module 2 - Weeks 7 and 8

In Ron Blue's video "Debt, Mercedes, and Speedboats," he suggests paying cash for a new car and planning to drive it for __________ years.

10

Which would be an example of a consumer using their right to fair compensation?

A chair falls apart two days after you purchase it, and you ask for a refund.

Rental properties

Apartments or condos

What is the best way to handle a setback in your spending plan (such as overspending on an item without planning?)

Calmly figure out what went wrong and how you can prevent it in the future, and then put it behind you and start fresh the next day

In considering purchasing products, what are some good guidelines to follow? Choose the six answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

Carefully read and make sure you understand any contract you sign. Don't travel far to save a few cents on the exact same product. Shop around to compare different deals for the same item. Get opinions from friends and relatives who have bought similar products. Make sure you know what the final price will be, including any extended warranty plans and fees. Make sure you know the policies for returns and refunds.

What different types of contracts might you see? Choose the three that apply. Please do not guess, as incorrect answers are penalized for this question type.

Cellphone agreements Property rentals Online contracts

Which of the following are good to do before making a purchase? Choose the three answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

Check out a company's complaint record with your local consumer affairs office and Better Business Bureau Get advice and price quotes from several sellers Decide in advance what you want and what you can afford

Which of the following is a type of savings account that banks will set up for customers to help save for a special purchase?

Christmas Club

Lower equilibrium price and lower quantity

Demand decreases and supply stays the same

Higher equilibrium price and higher quantity

Demand increases and supply stays the same

The right to be heard is evidenced by the laws and regulations that the government institutes to protect the rights and desires of consumers. What is this right geared toward mostly?

Environmental and fuel efficiency of automobiles

You have decided to follow a plan to help keep your money on track. You have a friend who tells you this is silly and that you "can't take it with you," so it's best to spend all of your money as soon as you earn it. What is the best response to this friend?

Explain that you have goals and plans that require a solid plan to achieve and ask if they would like to learn about that

In Ron Blue's video "John Steinbeck's Letter," Mr. Blue says that although the United States is the richest country in the world, this has not given us what?

Happiness and contentment

Because effective advertising creates a feeling of need for a product, what effect can that potentially have on demand for a product?

It can cause the demand to go up.

In Ron Blue's video "John Steinbeck's Letter," he references a letter written by John Steinbeck in the 1950s that warned of what?

Materialism

Because consumers have a right to choose among competing services instead of being forced to accept one company's service, often a certain service will be available from several different companies. What are some of these services?

Phone service, television service, health insurance

Economic harmony comes from the balance of which things?

Products, services, and consumers

What must you consider if you shop online?

Shipping costs and delivery times

Which organizations can offer credit cards to help make purchases?

Stores Banks Credit unions

Online contracts

Streaming services such as Netflix and Hulu and online games

The wages paid to workers can be affected by what?

Supply and demand

Equilibrium

The price moves toward a point where the quantity demanded is equal to the quantity supplied

Consumers should have access to programs and information that help make better buying decisions. Consumers should learn about the changing nature of products - consumer education is a lifelong responsibility. This describes which right of a consumer?

The right to education

During a global pandemic, the need for medical workers rises sharply. Based on this rise in demand, what can you assume would happen to the salaries of nurses?

They would rise due to the higher demand.

A cosigner legally agrees to which of the following?

To pay off the loan if the borrower cannot make the payments

Using the guidelines for spending covered in the lesson, choose all the tips below that can help you be a wise shopper. Choose the six answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

Track expenses so you will know where your money is going. Save money in special accounts so you are prepared for large expenditures. Pay cash for items that cost less than $5.00. Be a good steward of all your money and possessions. When you make a mistake with spending money, learn from your mistakes. Consider all the purchase options and costs before buying something expensive.

Cellphone agreements

Verizon, Sprint, or AT&T

insurance policy

a contractual agreement made between an individual or group with an insurance company

Insurance

a financial product that helps with keeping finances safe, especially when unexpected things happen like personal injury, fire, accidents, and even death.

co-pay

a set fee usually associated with health care policies

deductible

an amount set (usually on a yearly basis) that the consumer must pay before the insurance company is responsible for paying any amount.

emergency road service

covers towing, repairs, emergency gas delivery, changing a flat tire, opening a locked vehicle, and jumpstarting a dead battery

Equilibrium is where the quantity ____________ equals the quantity _________________.

demanded, supplied

The right to a _________________ environment says consumers have the right to work and shop in an environment that does not present health hazards due to construction, smoking, chemicals, or any other possible safety violations.

healthy

A contract is a __________ agreement between two entities.

legal

specialization

most insurance is sold by companies that specialize in a particular type of insurance

When shopping online, look for the ________ icon in the bottom corner of your screen or a URL that begins with "https" to ensure that your payment information is transmitted securely.

padlock

liability coverage

pays for damage due to bodily injury and property damages to others for which you are responsible--includes medical expenses and damage to other vehicles or other property

collision coverage

pays for damage to your vehicle caused by a collision with another vehicle, collision with an object such as a tree or road sign, and for vehicle rollover due to swerving or a sharp turn. usually is accompanied by a deductible

uninsured/underinsured motor vehicle coverage

pays for expenses you incur due to other actions that are not covered by them or their insurance. costs might include medical expenses or lost wages and other damages not covered

gap insurance

pays for the cost of replacing a vehicle based on current replacement pricing and not the actual value of your car due to depreciation

comprehensive coverage

pays for unexpected hazards or damage such as weather-related occurrences (hail, wind, flood), vandalism and theft, hitting a deer or other animal--may or may not have a deductible

car rental and travel expenses coverage

pays for you to have a rental car when your car is being repaired

medical payments coverage

pays for your medical expenses when you are injured by another person and provides for death benefits in the event you or others with you are killed

The "right to _____________" entitles the signer of a loan a certain amount of days to rescind, or cancel, the contract.

rescission

premium

the amount paid by the insured or the policyholder that goes to the insurance provider

Mortgages

Buying a home

What is one reason why it is important to read and understand all that is within a contract you sign?

Because God expects us to keep our promises

Why is it a good idea for consumers to know what is in the food and products they buy? Choose the five correct answers. Please do not guess, as incorrect answers are penalized for this question type.

Because caloric intake is important for some people to know Because some people cannot have foods produced in plants that also process peanuts Because some people are on special diets and need to know specific percentages of certain items Because some people are allergic to some foods, such as peanuts Because some people need low-sodium products