True/False
Indicate whether the
statement is true or false.
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1.
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Your life span lasts from the time you are born until the time you
retire.
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2.
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Wants are the things you can’t live without, and needs are the
things
that you would like to have but can live without.
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3.
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The law of demand says that consumers will demand more of a product
at a
lower price than at a higher price.
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4.
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In a market economy, customers and businesses operate without much
government
interference.
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5.
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To pay the cost of advertising, businesses have to decrease the price of
the
products they are advertising.
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6.
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Puffery, innocent exaggeration, is illegal.
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7.
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The decision making process helps you approach buying decisions in
an
organized, logical manner.
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8.
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The decision making process helps you approach buying decisions in
an
organized, logical manner.
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9.
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Recycling programs increase the amount of trash discarded into
the
environment.
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10.
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If an ad is deliberately designed to mislead, the business is guilty
of
deceptive advertising.
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11.
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A certified check guarantees that your account can cover the check.
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12.
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It is wise to give your PIN number to only a few close friends
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13.
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The more often interest is compounded, the more interest you will earn
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Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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14.
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. A decline in a product’s value is called
a. | dependence | c. | deficit | b. | depreciation | d. | differentiation |
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15.
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. A consumer can gather information about technology-based products
from
a. | magazines | c. | television | b. | the Internet | d. | all of
these.
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16.
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The practice of pressuring consumers to buy a more expensive product
than
what they had intended is called trading up
a. | jumping prices | c. | trading up | b. | inflating
prices | d. | moving on. |
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17.
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A company’s promise that the product will meet specific standards
over
a given time period is
a. | Warranty | c. | its public im
age | b. | advertising | d. | its trademark |
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18.
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. The number of ________ you claim on your W-4 determines the
amount of money
withheld from your pay.
a. | principles | c. | allowance | b. | refunds | d. | deductions |
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19.
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A planning document on which you record your expected and actual
income and
spending over a short time is a
a. | bank statement | c. | budget worksheet | b. | checkbook | d. | financial diary |
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