7
QuizMultiple Choice

Making Spending Decisions

Question 7 • ***CPS Online Personal Finance fall – 3-2027

Samantha has $200 to spend on school clothes. She can buy two designer blouses that all of her friends have, or she can buy four generic blouses for the same amount. She decides to buy the designer blouses.What is Samantha’s motivation behind buying the designer blouses?

Answer
A
conspicuous consumption
B
consideration for the future
C
confusion of needs and wants
D
desire to get the best deal

Explanation

Samantha chooses the designer blouses because they are popular with her friends, even though the same $200 could buy twice as many generic blouses. Buying something partly to display status or fit in with others is conspicuous consumption. The choice is not about getting the best deal, since the generic blouses offer more for the same amount.

AI-written and checked against the verified answer.

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