Making Spending Decisions Answers

17 verified answers3 views
1
Free Preview

Raul needs to buy a computer for work. The first step in researching the product is to

A
examine key features, such as how long it will last.
B
write a product review for it on a consumer blog.
C
ensure that it is protected by the government.
D
buy it because it is endorsed by a popular company.
2
Free Preview

conspicuousemotionalresearchwise

A
conspicuous
B
emotional
C
research
D
wise
4

Before Robert buys a new car, which questions should he ask himself? Check all that apply.Is this something I need?Will my friends like this?Is advertising influencing me?Will this help others in my family?Will I impress my coworkers?Am I considering my future needs?

A
Is this something I need?
B
Will my friends like this?
C
Is advertising influencing me?
D
Will this help others in my family?
E
Will I impress my coworkers?
F
Am I considering my future needs?
5

Which of the following is an unhealthy motivation for donating money to charitable organizations?

A
to help build a better world
B
to support a cause that you care about
C
to do good for others
D
to make yourself feel important
6

What helps a consumer determine the quantity of something to buy?

A
marginal cost
B
marginal error
C
marginal benefit
D
marginal comparison
7

The advertisement is promoting a soft drink.

Question illustration
A
It is endorsed by celebrities.
B
It claims to be naturally delicious.
C
It has a recognizable logo.
D
It has great public awareness.
8

The chart shows pricing and payment options for three big items.

Question illustration
A
paying the $1,450 up front
B
making rent-to-own payments
C
taking out an installment plan
D
renting to own and returning the item mid-contract
9

When making a major purchase, people should

A
consider their future needs.
B
always finance the product.
C
buy the most expensive product.
D
weigh what their friends think.
10

Which statements accurately describe financing a purchase? Check all that apply.It requires people to pay the price upfront.It means people take on debt.It allows for an immediate purchase.It means people can buy without debt.It requires that interest be paid.It leads to lower prices paid.

A
It requires people to pay the price upfront.
B
It means people take on debt.
C
It allows for an immediate purchase.
D
It means people can buy without debt.
E
It requires that interest be paid.
F
It leads to lower prices paid.
11

A drawback to an installment plan is that

A
it takes longer to buy a product.
B
a large down payment is required.
C
interest rates are generally very high.
D
interest rates are generally very low.
12

Which example could be considered a harmful spending motivation?

A
asking others about potential hidden costs
B
putting family needs first before buying a product
C
buying something expensive in order to feel better
D
comparing features of many different products
13

Consumers who agree to a "no interest” installment plan should be aware of

A
how much is saved by avoiding cash.
B
the terms outlined in the paperwork.
C
sales that would lower prices.
D
interest rates other consumers pay.
14

The graphic compares two basketball shoes.

Question illustration
A
the Hyper-Dunks because they will last for two seasons
B
the Air Slammers because they are the best price
C
the Hyper-Dunks because his favorite pro player wears them
D
the Air Slammers because those are what his teammates chose
15

The chart shows the pricing history for two items.

Question illustration
A
Carrie, who waited six months to buy a game system
B
Timothy, who bought a game system right away because it was popular
C
Eugene, who bought a phone immediately for fear they would sell out
D
Marlene, who waited six months to buy a phone
16

Consumers usually save the most money on major purchases when they

A
agree to an installment plan.
B
save up to pay with cash.
C
take out a low-interest loan.
D
agree to rent to own.
17

Which best explains why companies use celebrities to endorse their products?

A
to develop a brand
B
to copy other companies
C
to influence consumers
D
to justify a quality claim

Did you find these answers helpful?