The Individual Consumer

Income which is left after all taxes and other deductions have been subtracted out is

• gross income

• net income

• expendable income

• discretionary income

Consumer rights were outlined in a speech to Congress by

• the U.S. Attorney General

• the Food and Drug Administration head

• President John F. Kennedy

• the Secretary of the U.S. Department of Agriculture

Laws that implemented the consumers' right to be informed forbid

• informative advertising

• competitive advertising

• misleading advertising

• consumer advertising

Suppose a consumer buys a vacuum cleaner and after a few uses, it ceases to work as it should or begins to fall apart. If efforts to solve the problem with store management or the seller fail, the consumer may choose to contact

• a federal judge

• the U.S. government

• the Better Business Bureau

• their congressperson

What effect can unethical consumer behavior have on you?

• You will have fewer choices of goods and services.

• You will have more choices of goods and services.

• You will pay lower prices for fewer choices.

• You will pay higher prices on goods and services.

What is the easiest way of borrowing money?

• credit cards

• auto loans

• student loans

• home mortgages

The most common reason that a consumer is refused a loan by a bank is

• ethnic prejudice

• poor credit ratings

• high taxes

• high interest rates

Which of the following type of personal debts is usually considered wise and justified?

• credit card purchases of luxuries that you want immediately

• a loan for the car you have always dreamed about

• money to pay off other debts and interest

• home mortgage

What effect do interest rates have on the ability of consumers to buy a house or a car?

• Low interest rates result in lower quality products.

• High interest rates result in lower quality products.

• Low interest rates increase the cost.

• High interest rates increase the cost.

What is the single greatest cause of personal bankruptcy?

• loss of a job

• unexpected expenses

• accumulation of debt

• economic depressions