PF: W8, PF LIteracy: W7

Stephen wanted to buy a used car when he started his new job. Which of the following ideas would NOT help him make the best decision?

Considering only cars that were his favorite color

A ________is anyone who purchases products or services for personal use or possession.

Consumer

To help you stay on track with your spending, what can you plan to use for your variable (changing) expenses?

Cash

Which type of agreement will ask you to agree to be a customer for a certain amount of months, usually while you are paying off equipment?

Cellphone agreement

What different types of contracts might you see?

Cellphone agreements Correct answer: Property rentals Correct answer: Online contracts

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

Amanda wanted to buy some furniture for her new apartment. Because she was bringing most of her furniture from home, she only needed a sofa and two chairs. After carefully shopping at several furniture stores, she found what she wanted. Below are the possible options for financing her purchase. She plans on paying the cost of the furniture off in three months. Decide which option would be the wisest choice for her.

Store Credit (If it is paid off in three months (90 days), the interest rate would not be a factor.)

Consumers have rights related to the products they buy and the services they receive. Select the five valid consumer rights listed below.

The right to be informed about products and any potential hazards involved with the use of a product The right to be heard and to voice opinions about products and services The right to choose (and not be forced) to accept a certain company's product The right to be safe and for all products and services to be safe The right to an explanation of all guarantees and warranty information about a product before purchasing

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

When a contract is signed, who promises to follow what is stated in the contract? Choose the two that apply.

The signer of the contract Correct answer: The writer of the contract

If the market is oversaturated with a certain group of laborers (for example, construction workers), based on the law of supply and demand, what will potentially happen to the wages of these workers?

They could decrease.

Which of the following are important reminders for consumers? Choose the three that apply.

They should know the rights all consumers have and make sure they receive what is advertised or promised. Correct answer: They should never accept defective goods or be satisfied with substandard service. Correct answer: They do not need to be at the mercy of the producers, providers, and sellers of products and services.

A cosigner legally agrees to which of the following?

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

According to Proverbs 11:15, whoever cosigns for a stranger will _______________.

be hurt

Equilibrium is where the quantity_____equals the quantity______.

demanded, supplied

In our lessons, we learned that there is no such thing as an independent financial decision. In our lifestyle choices, and specifically in our finances, __________ affects ___________.

everything, everything

If demand for an item rises and supply stays the same, the price will_____. If the demand for an item goes down and the supply stays the same, the price will_______.

increase, decrease

A contract is a __________ agreement between two entities.

legal

The wages paid to workers can be affected by what?

supply and demand

In economics,____ is the amount of a resource that producers are willing and able to produce for the marketplace. _______ is a consumer's desire to purchase goods and services and what they are willing to pay for those goods and services.

supply, Demand

As a consumer, why should you beware of payday, car title, and tax refund loans?

Because interest rates on these loans are usually excessive

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

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

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

Equilibrium

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

Which of the following are good to do before making a purchase? Choose the three answers that apply.

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

James 1:5 tells us, "If any of you lacks wisdom, let him ask_____, who gives generously to all without reproach, and it will be given him."

God

Demand increases and supply stays the same

Higher equilibrium price and higher quantity

Higher equilibrium price and higher quantity

Lower equilibrium price and lower quantity

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

In Ron Blue's video "Debt, Mercedes, and Speedboats," Mr. Blue discusses buying a Mercedes with a man. How does he advise that the man purchase the Mercedes?

With cash

Which of the following are possible reasons for shopping online? Choose the five answers that apply.

You can check inventory to see if the item is in stock. If you are using the same product model number, it will be the same item as in retail stores. It is easy to compare the same item on different websites. You don't have to fight the crowds on busy shopping days. Many online merchants give free shipping on orders.