PFS Chapter 6
What is the unit price of a 32 ounce box of brown sugar that costs $3.20?
$0.10 per ounce.
Which of the following is a disadvantage of a car lease?
At the end of the lease, you have no ownership interest in the vehicle.
Steven needs to write a will. His best resource is (a/an)
Attorney
The price of a leased vehicle is known as the
Capitalized cost
Craig wants to get his old car repaired, but he doesn't want to spend much money. He probably will NOT want to go to the most expensive repair service, which is from a(n)
Car dealer
These products are highly advertised and available at many stores.
National brands
The lowest payment does not necessarily mean the best credit plan. If your car loan is a long period of time, you may end up owing more than the car is worth, which is called
Negative equity
This shopping label is used primarily on perishable products to help the consumer judge freshness or shelf life.
Open dating
A vehicle lease has several costs. Which of the following is the amount paid monthly and the number of payments?
Payment schedule
This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired.
Warranty
Sally has a major problem with a product and thinks that many others have had the same problem. Which of the following is the best way to resolve the problem?
Class action lawsuit
When Jane researched the brands and prices of refrigerators, she was
Comparison shopping
This type of promotion immediately reduces the amount a family spends on groceries each week
Coupons
All of the following are variable operating costs for a vehicle except
Depreciation
Most products come with some guarantee of quality. This type of warranty states that a defective product can be fixed or replaced during a reasonable amount of time.
Full warranty
The appearance of a used car can be deceptive. When purchasing a used vehicle, it is a good idea to
Have a trained and trusted mechanic of your choice check out the vehicle.
Most products come with some guarantee of quality. This type of warranty covers the product's intended use or other basic understandings that are not in writing.
Implied warranty
While Paul was shopping for a new chainsaw, he found a great deal on a new drill and bought it. This is an example of
Impulse shopping
The dealer's cost is also known as the
Invoice price
Which of the following is correct about the lemon law?
It applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles.
Adolph has a low income and cannot afford his own attorney. He needs legal assistance and should make use of (a)
Legal aid society
Most products come with some guarantee of quality. This type of warranty covers only certain aspects of the product, such as parts.
Limited warranty
A variable operating cost for a vehicle is
Maintenance and repairs
All of the following are fixed operating costs for a vehicle except
Maintenance and repairs
A process used to settle grievances in a nonbinding process is called a(n
Mediation
A vehicle lease has several costs. Which of the following is the interest rate used to calculate the monthly cost?
Money factor
Which of the following is an advantage of a car lease?
Monthly lease payments are usually lower than monthly financing payments.
Using the following information, what is the cost to lease a car? • Security deposit $300 • Monthly lease payment $300 per month for a five-year lease • Opportunity cost of security deposit 300 × loan period (in years) × 2% interest • End-of-lease charges 500
$18,530
Using the following information, what is the cost to buy a car?• Down payment $3,000 • Monthly loan payment $350 per month for a six-year loan • Opportunity cost of down payment $3,000 × loan period (in years) × 2% interest • Estimated value of vehicle at end of ownership period $4,000
$24,560
While evaluating alternatives, all of the following are appropriate questions you could ask before making a major purchase except
All of these are questions that should be asked
Most products come with some guarantee of quality. Which of the following is usually in written form, created by the seller or manufacturer, and has two forms?
Express warranty
Mike bought a new car. His new car warranty probably included all of the following except
Extended coverage for air conditioning
These products are sold by one chain of stores and are low-cost alternatives to famous-name products.
Private-label or store brands
A partial REfund of the price of a product is called a
REbate
George has never bought a new car before. Which of the following techniques should he use to get the best deal?
Research the dealer cost and begin negotiations from that point
The expected value of a vehicle at the end of a lease is called the
Residual value
A no-haggling dealer presents the price of a new car to be accepted or rejected as stated and is called a(n) ________ dealer.
Set price
If you have a problem whose remedy will be between $1,500 and $3,000, the appropriate tool to use would be (a)
Small claims court
The amount printed on a label with the suggested retail price that is posted on a vehicle is called the
Sticker price
Tamra went to a restaurant and had an unpleasant experience that sent her to the hospital. The problems at the restaurant should be handled by
The county health department
