AnswersHSA 26-27 EconomicsEmployment and Education

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1
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Why do prices increase when demand for a product is high?

A
Companies know they can make more money by selling fewer products at higher prices.
B
Companies know that people will be willing to spend more to get an in-demand product.
C
Companies take advantage of the demand to make people spend more money on excess products.
D
Companies know they can stop production and still make money on sales.
2
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When companies spend millions of dollars developing logos and slogans, or use celebrity endorsements to encourage consumers to buy particular products, this is called

A
false advertising.
B
undue influence.
C
product branding.
D
quality assurance.
3

Read the scenario.Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. He is looking to purchase both a car and a place to live, and he is very interested in building up equity and credit.

A
buying both a car and a home
B
leasing both a car and home
C
buying a car and leasing a home
D
leasing a car and buying a home
4

Read the scenario.Raoul has just been promoted to a supervisor’s position, which is a steady job. He likes to enjoy life, take vacations, and change things up every now and then. That’s why he will not have a lot of extra money to spend on repairs and maintenance on his car.

A
buy a used car.
B
lease a used car.
C
buy a new car.
D
lease a new car.
5

The point at which it is no longer advantageous to buy in bulk is known as marginal

A
cost.
B
tipping.
C
benefit.
D
error.
6

[BLANK]

A
increases
B
decreases
C
stays the same
7

At what point does buying in bulk stop being a wise spending choice?

A
when the consumer has a lot of space to store bulk items
B
when costs rise too quickly due to demand
C
when bulk items are not on sale anymore
D
when the consumer buys more than is needed
8

A monthly fixed rate mortgage payment

A
could change.
B
never changes.
C
increases annually.
D
decreases annually.
9

Which questions should someone ask when deciding whether to lease or buy a car? Check all that apply. Will I use it more than the allowed lease mileage?Will my family like the car?How long do I want the car?How much do I want to spend?How much do I like the car’s options?

A
Will I use it more than the allowed lease mileage?
B
Will my family like the car?
C
How long do I want the car?
D
How much do I want to spend?
E
How much do I like the car’s options?
10

Which activity is done in Step 2 of comparison shopping?

A
Research a product.
B
Assess the purchase objectively.
C
Compare prices and features.
D
Buy a product.
11

Which details apply to a financing contract? Check all that apply.

A
requires a credit check
B
are always less expensive than using a credit card
C
includes interest rate information
D
requires a signature for rent-to-own agreements
E
can be broken at any time
12

Which option below is not a potential risk of purchasing a used car?

A
used cars can require repairs sooner
B
shorter lifespans of the engine and transmission
C
used cars can have lower initial cost
D
unexpected issues may arise
13

Mr. and Mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottles. Which of the following makes the most economic sense?

A
20 bottles of soda at $1.50 each
B
4 six-packs of soda at $5.00 each
C
one case of 24 sodas at $18.50
D
two cases of 24 sodas at $18.50 each
14

The most economical way to purchase large items, such as furniture, is to buy with.

Answer:

cash

15

Which statements apply to leasing a car? Check all that apply.The car may be driven as much as needed.Payments are generally higher than buying.There are mileage restrictions on the car.You must return the car after the lease ends.There are penalties for ending the lease early.You can sell the car to someone else after the lease ends.

A
The car may be driven as much as needed.
B
Payments are generally higher than buying.
C
There are mileage restrictions on the car.
D
You must return the car after the lease ends.
E
There are penalties for ending the lease early.
F
You can sell the car to someone else after the lease ends.
16

Building equity in a home is a good thing because

A
mortgage payments decrease as equity increases.
B
credit scores increase as equity increases.
C
equity in a home increases the homeowner’s net worth.
D
property taxes decrease as equity increases.
17

Why might people choose to rent a home rather than buy a home?

A
They have a lot of money saved for a down payment.
B
The property maintenance is the owner's responsibility.
C
The interest rates on equity are too high.
D
They have a long-term commitment to the area.
18

This chart shows the actual pricing history for three items.

Question illustration
A
game system
B
smartphone
C
DVD
D
It's most beneficial to buy all now.
19

What is the purpose of comparison shopping?

A
ensuring you are not buying out of emotion
B
attempting to find the best deal on a product
C
determining whether you truly need a product
D
reading reviews to make sure a product is good
20

At what point does buying in bulk stop being a wise spending choice?

A
when the consumer has a lot of space to store bulk items
B
when costs rise too quickly due to demand
C
when bulk items are not on sale anymore
D
when the consumer buys more than is needed

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