Chapters 11 and 12 Personal Finance

T/F By far, the biggest advantage of renting is that tenants have no responsibilities whatsoever.

False

T/F By law, a renter can refuse to allow the landlord into his/her living unit at all times.

False

T/F Everyone's wants and needs are basically the same.

False

T/F Few people make purchasing decisions based on environmental concerns.

False

T/F Furnished rentals are usually cheaper than unfurnished rentals.

False

T/F Goals are slow to change, but values change often.

False

T/F If you live in a rental property, you are expected to leave it as you found it—even so-called "normal wear and tear" is not acceptable.

False

T/F It is usually less expensive for college students to live on campus than to live at their parents' home and commute to school.

False

T/F Leases usually require six months' written notice of rent increases and tenant departures.

False

T/F Most Americans place a very low value on goods and services provided by the government.

False

T/F People rarely make purchasing decisions based on the choices their friends and relatives have made.

False

T/F Studio apartments have less living space than other apartments, and they are also more expensive.

False

T/F The time you get to spend doing things you like and enjoy is called discretionary time.

False

T/F University-owned apartments are usually available only to undergraduate students.

False

T/F Using loss leaders to attract customers is unethical and, in some states, illegal.

False

T/F You usually don't need to worry about having a source of income until after you have rented a place to live.

False

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

Position in life

Your likes and dislikes are called your personal ________

Preferences

T/F A specific consumer group to which advertisements are designed to appeal is called a target market.

True

T/F Choosing a friend as your roommate will not guarantee a successful living arrangement.

True

T/F Comparison shopping will allow you to determine whether you are getting the best quality for the price.

True

T/F Do not consider sunk costs when making a purchasing decision.

True

T/F Examples of factors outside yourself that affect your spending patterns include the economy, technological advances, the environment, and social pressures.

True

T/F For college students, finances will have a major impact on the decision of where to live.

True

T/F If you sign a rental agreement rather than a lease, the landlord can raise the rent anytime or ask you to leave anytime.

True

T/F In a market economy, it is important to preserve legal and personal rights.

True

T/F Many rental properties do not provide garages or off-street parking.

True

T/F Rental houses are usually more expensive than other housing options.

True

T/F The more personal resources you possess, the greater your purchasing power.

True

T/F When comparing purchase options, consider time and convenience as well as cost.

True

T/F You can save money on moving by doing your own packing.

True

T/F You sometimes must give up one thing to get another because your resources are limited.

True

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

Unit pricing

The principles by which you live are your

Values

Which of the following is probably NOT a question you need to ask of a prospective roommate?

When is your birthday?

A building with two separate living units is called a(n)

duplex

The legal process of removing a renter from rental property is called

eviction

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

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

An on-campus building that contains many small rooms that are rented out to students is called a

dormitory

Which of the following would generally be considered an advantage of renting as compared to owning a home?

fewer responsibilities

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.

frequent buyer card

When you live in a co-op, also known as a(n) _______, you get a room similar to one in a dormitory at lower cost but with added responsibilities.

housing cooperative

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

odd-number

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

opportunity

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

product

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

public goods

Which of the following consists of four bedrooms connected to a single kitchen and living room that is shared by the occupants?

quad

A living space that has two or more levels is called a(n)

townhouse

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

trade off

The downtown condo that Charles rents does not offer free parking. The monthly rate at a nearby parking garage is $120, but the garage offers a 5 percent discount for condo residents. If Charles decides to use this garage, how much will he pay for parking over the course of one year?

$1,368

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

$10,500.00

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?

$27.55

Diana put down a security deposit of $500 when she rented her studio apartment two years ago. Her lease specified that she would get the deposit back when she moved out, minus the cost of repairing any damages to the apartment. When she moved out, the landlord found the following damages: broken window: cost $40 to repair broken knob on cabinet: cost $6 to repair missing set of mini-blinds: cost $35 to replace How much of her security deposit will Diana get back?

$419

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?

$420.00

Bonita, Jenny, and Maya are roommates. They equally share the following expenses each month: Rent: $800 Utilities: $150 Groceries: $400 Household supplies: $100 Miscellaneous expenses: $50 What is each roommate's monthly share of the expenses?

$500

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?

$60.00

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?

$68.43

Suppose you currently pay $45/month to the phone company for telephone service; $90/month to the cable company for cable TV; and $50/month to an Internet Service Provider for high-speed Internet access. You learn that you can bundle all these services with the cable company for one monthly fee of $148. What percentage savings is that?

20%

The regular monthly rent at the Empty Arms Apartments is $800 per month. If Andrew signs a one-year lease, the rent is reduced to $700 and the security deposit is also reduced from $500 to $300. The lease also states that if Andrew terminates the agreement prior to one year, he must repay the entire rent reduction and the balance of the security deposit. ​ Suppose Andrew must move out at the beginning of the eighth month. What is the total amount he would owe the landlord, under the terms of the lease?

?

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

A wristwatch

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

Basic needs

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

Collective

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

Innovations

Which of the following is an obligation of the lessor?

Provide a dwelling that is habitable

The monthly charge you pay to live in an apartment is called

Rent

is the process of using another person's property for a fee.

Renting

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

Smoky Mountains National Park

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)

Sunk Cost

Combining telephone, Internet service, and cable TV into one package is an example of

bundling

Which type of college does not provide any on-campus housing options?

commuter campus

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

concern for the enviornment

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

custom

In a typical roommate arrangement, all of the following expenses would be shared equally by all of the roommates except

laundry services

A(n) ________ is a written agreement that allows a tenant to use property for a set period of time at a set rent payment.

lease

Many utility companies charge new customers a(n)

refundable security deposit

A(n)________ is a written agreement that allows you to leave anytime as long as you give the required notice; these are often called month-to-month agreements.

rental agreement

A detailed list of current property conditions is called a(n)

rental inventory

A(n) ________ is a refundable amount a renter pays in advance to protect the owner against damage or nonpayment.

security deposit

A(n) ________apartment (also called efficiency apartment) has one large room that serves as the kitchen, living room, and bedroom.

studio

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

the economy