Personal Finance Chapter 7

Which of the following is true about the "If I take-away technique?

• This technique involves negotiating the lowest price possible, then throwing something else into the deal.
• This technique should only be use when the "good by, bad guy" technique is used on you.
• This technique is meant to take advantage of the other person in the negotiation.
• Use this technique prior to negotiating price.

Which of the following statements is false?

• Using a cost-benefit analysis approach to your buying decisions will make you a wise consumer.
• In addition to economic savings, wise consumers also enjoy improved health and have a positive impact on the larger social and even global environment.
• Being a wise consumer involves developing a variety of skills from product research to careful comparative analysis.
• Your choices as a consumer have no impact on the larger social environment.

Joe tries to bargain at an electronics store but is unable to negotiate the price down. What should be his next step?

• Ask about 90-days-same-as-cash
• Shut up
• Walk away
• All of the above

Which of the following describes why using cash is a great bargaining tool?

• Cash is emotional.
• Cash is visual.
• Cash has immediacy.
• All of the above.

Which of the following is typically not a good place to find a deal?

• Online auctions
• Consignment shops
• Individuals
• Mall

Getting the best deal on a purchase involves doing all of the following except:

• Having patience
• Negotiating
• Being first in line for a new product
• Shopping around to find the best deal

"The Lucky Seven" rules can get you incredible deals on the stuff you buy every day, but they only work if you:

• Use them
• visit another country
• Are willing to buy the item regardless of the price
• Have a lot of money

Which of the following statements is false?

• Negotiation involves a conversation of back-and-forth, give-and-take.
• If negotiation is done correctly, it will end up being a win-win deal.
• Just asking for a great deal doesn't always mean that you'll get one.
• A great deal often just happens by accident.

When buying things at an auction, it is important that you:

• Familiarize yourself with the item you want to purchase 
• Don't get caught up in the excitement and end up paying more than retail price
• Set a limit on the amount you are willing to pay
• All of the above

Which of the following is not recommended when selling something you own?

• Find an uninformed buyer and charge the highest price possible.
• Be armed with information so that you can be sure it's a win-win deal.
• Get antiques or collectible items appraised and sell them slightly below that price.
• Make it clear that, as a seller, you have walk-away power.