Personal Finance Ch. 1 - Consumers

Needs are things you cannot live without, and wants are the things that you would like to have but can live without.

• True

• False

The law of demand says that consumers will demand less of a product at a lower price than at a higher price.

• True

• False

In a market economy, consumers and businesses operate without any government interference.

• True

• False

Opportunity cost is the value of what you give up when you make a choice.

• True

• False

Puffery, innocent exaggeration, is illegal.

• True

• False

If an ad is deliberately designed to mislead or provide false information, the business is guilty of deceptive advertising.

• True

• False

Human resources are the only resource needed to provide a product or service.

• True

• False

The first step in the decision making process is to SEARCH for information about a product.

• True

• False

The law of supply says that producers will offer more of a product at a higher price rather than a lower price.

• True

• False

A person's goals change as they learn and grow.

• True

• False