Schuecon q2

Which of the following can be deducted from federal income taxes to lower the amount Olivia owes?

the value of gifts to charity

The Electronics Shop advertises a TV as costing $100 per month for six months instead of stating that it costs $600. Why would the store use this type of ad?

to make the TV seem more affordable to consumers

What does a credit bureau do?

provides creditors with reports of consumers' credit-paying histories

What is the primary purpose of an IRA?

provides incentives for people to save for retirement

Taylor likes to shop. She often purchases expensive things with- out thinking about the consequences. Taylor's tendency to buy on impulse

reduces her opportunities to buy things in the future.

Most of the payments to Social Security recipients come from which source?

taxes paid by people currently working and their employers

Collateral for a loan is

the fee charged for not repaying the loan.

What is most likely to happen when there is a large and sustained increase in the inflation rate?

the interest rate on home mortgages will increase

Alex is thinking of buying a five-year-old car from Owen. Owen advertised the car as like new. Which of the following would give Alex the most reliable source of information on how dependable the car might be?

an auto mechanic Alex has used in the past

Which of the following generally increases the wages or salaries that businesses pay their employees?

an increase in the productivity of workers

Noah has $15,000 in his savings account at the major bank in his city. Which of the following best explains why Noah feels his money is safe?

Noah's savings account at the bank is FDIC-insured.

Jon is considering job offers from four companies, each of which will pay him $50,000 a year. If Juan is most interested in his career advancement, at which company would he most likely chose to work?

Company D that enrolls him in an executive training program

Which of the following is an advantage of a 401(k) retirement plan over a private savings plan that a worker establishes for retirement?

Employers may contribute to a 401(k) plan.

Justin decided to work in the home construction industry after he graduated from high school because he likes to build things and be outside. Which economic event is most likely to increase the wage or salary he is paid?

More applicants obtain home mortgages from banks.

Ruth decided to get a 2-year degree in electronics after graduating high school rather than enter the job market. What is the likely outcome of this decision on Ruby's future income?

She will earn a higher income because she has more work skills to offer an employer.

When Desmond buys an expensive product he spends time getting information about it. But when he buys an inexpensive product he spends little time getting information on it. Which of the following best explains his economic decision about gathering product information?

The benefits of getting information on the expensive product are greater than the costs.

Sadie is a high school graduate who has decided to go to college next year. From a financial decision-making perspective, she has concluded that the

costs of going to college are less than the expected benefits.

Most states have "lemon laws." These laws protect buyers from

defective products.

Maddie gets a haircut at the hair salon, washes her car at the spray wash, orders a coffee at the coffee shop, and gets a flu shot at the drugstore. Which one of her consumer purchases has the most widespread and positive effect on others in her community?

flu shot

A car is priced at $25,000 at two dealerships. Each car has a warranty. One dealership offers a longer warranty on its cars. What will be the likely effect of the longer warranty?

lowers the long-term cost of owning the car

Mia is comparing the terms for credit cards. She always pays on time, but rarely pays off her entire balance. Which of the follow- ing features is most important for Mia to consider when selecting a credit card?

lowest interest rate

A new car loan will likely have a higher interest rate if the borrower

makes a lower down payment.