Personal Finance ch. 11

$420

Sierra can purchase a new sofa at Store A for $400 plus a delivery charge equal to 5 percent of the purchase price. She can buy the same sofa at Store B for $410 plus a $15 delivery charge. If she chooses the least-expensive option, how much will she pay?

true

t or f. A specific consumer group to which advertisements are designed to appeal is called a target market.

true

t or f. Comparison shopping will allow you to determine whether you are getting the best quality for the price.

true

t or f. Do not consider sunk costs when making a purchasing decision.

false

t or f. Everyone's wants and needs are basically the same.

true

t or f. Examples of factors outside yourself that affect your spending patterns include the economy, technological advances, the environment, and social pressures.

false

t or f. Few people make purchasing decisions based on environmental concerns.

false

t or f. Goals are slow to change, but values change often.

true

t or f. In a market economy, it is important to preserve legal and personal rights.

false

t or f. Most Americans place a very low value on goods and services provided by the government.

false

t or f. People rarely make purchasing decisions based on the choices their friends and relatives have made.

true

t or f. The more personal resources you possess, the greater your purchasing power.

false

t or f. The time you get to spend doing things you like and enjoy is called discretionary time.

false

t or f. Using loss leaders to attract customers is unethical and, in some states, illegal.

true

t or f. When comparing purchase options, consider time and convenience as well as cost.

true

t or f. You sometimes must give up one thing to get another because your resources are limited.

trade-off

A(n) ____ involves giving up one option in exchange for another.

product

Advertising intended to convince customers to buy a specific good or service is called ____ advertising.

the economy

All activities related to the production and distribution of goods and services in a geographic area are referred to as what?

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Frazier's Department Store lowered the price on all women's coats by 15 percent. Bonnie saw a coat she liked for $59.50. How much did the coat cost before Frazier's lowered the price?

$60

Liam found a set of DVDs of his favorite television show at a local book store for $75. He did some comparison shopping and found the same set at a second store for 20 percent less. How much is the price of the DVDs at the second store?

opportunity

The value of your next best choice is called a(n) _____ cost.

custom

A long-established practice that takes on the force of an unwritten law is called a(n) ____

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Chelsea bought groceries at the market yesterday and used the following coupons: ​ Manufacturer coupon for soup: 25 cents off Manufacturer coupon for spaghetti sauce: 45 cents off Manufacturer coupon for cereal: 50 cents off Manufacturer coupon for frozen corn: 15 cents off Store coupon for spaghetti: 50 cents off Store coupon for milk: 75 cents off ​ The store doubles all manufacturer coupons. If the total of Chelsea's purchase was $31.50 before the coupons were deducted, what was the total after the coupons were deducted?

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Crazee Harry's Used Car Lot bought television advertisements for one week. The ads cost $500 every time they run on weekdays; they cost $750 every time they run on weekends. Use the following information to determine how much Crazee Harry paid for the television advertisements. Monday: the ads ran 3 times Tuesday: the ads ran 3 times Wednesday: the ads ran 4 times Thursday: the ads ran 4 times Friday: the ads ran 1 time Saturday: the ads ran 2 times Sunday: the ads ran 2 times

position in life

Factors such as your age, marital status, or employment status are examples of your what?

innovations

New ideas, products, or services that bring about changes in the way you live are called what?

concern for the environment

People are buying more products that are ecologically safe, recyclable, and organic. This is mostly an example of how _____ influences personal buying decisions.

sunk cost

Suppose Susan purchased a used car three years ago for $2,500. Today, the car's engine stopped working and cannot be fixed. In this case, the $2,500 represents a(n) what?

public goods

The goods and services provided by government to its citizens are called ____

values

The principles by which you live are your what?

frequent buyer card

This type of card is punched each time a customer makes a purchase, and customers who accumulate enough punches receive some type of reward, such as free merchandise.

define the problem, obtain accurate information, compare choices, make a decision, take action, reevaluate

Which of the following lists the steps of the decision-making process in the correct order?

Smoky Mountains National Park

Which of the following would be an example of a public good?

wrist watch

Which of the following would probably be classified as a life-enhancing want?

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Your likes and dislikes are called your personal _____

basic needs

_____ are the items necessary for maintaining physical life and include food, water, and shelter.

odd-number

_____ pricing is the practice of setting prices at uneven amounts rather than whole dollars to make them seem lower.

unit pricing

_____ tells you how much a product costs per ounce or other measure of quantity.

collective

_____ values are the ideals and values that are important to society as a whole.