Economics Unit 5

When purchasing a vehicle you should always test drive the vehicle?

• True

• False

Leasing a vehicle is really only beneficial to those who drive less than __ miles and live close to the dealership.

• 5,000

• 10,000

• 15,000

• 20,000

Which type of contract should you get when leasing a vehicle?

• Closed end

• Open End

• Balloon

• Revolving

The cheapest product is always the best one to buy?

• True

• False

Answer explanation

Price is just one criteria that you should look at when making a purchase.

A mortgage payment is made up of PITI, what does PITI stand for?

• payment, interest, terms, insurance

• principal, interest, taxes, insurance

• principal, interest, terms, insurance

• payment, interest, taxes, insurance

The purpose of brand advertising is to make you remember a particular brand.

• True

• False

Price is the most important criteria to consider when choosing between two similar products.

• True

• False

Answer explanation

As you learned from the PACED model, price is just one criteria to look at when making a purchase.

Which of the following are advantages to buying a new car?

check all that apply

• Warranty

• Get what you want

• Reliable

• No initial depreciation

Two common ways to save money are discount coupons and manufacturer's rebates?

• True

• False

When buying a car, you should negotiate in three parts. Which answer is in the correct order to negotiate in?

• financing

  vehicle price

  warranty package

• trade-in price

  vehicle price

  financing

• vehicle price

  trade-in price

  financing

• List price minus the sales price plus financing deals