Dave Ramsey Chapter 7 Short Answer

Summarize the benefits of being a wise consumer.

Answer explanation

In addition to economic savings, wise consumers enjoy improved health and have a positive impact on the larger

social and even global environment.

Explain how "walk-away power" can be used as a negotiating tool.

Answer explanation

You must not get emotionally attached to the purchase. It's only if you're prepared to walk away from the purchase

that you will have the ability to negotiate.

What role does research play in getting good deals on purchases?

Answer explanation

Answers will vary, but students should recognize that researching a product prior to purchase makes you an

informed consumer. Good negotiators are always armed with information about the product.

Why is honesty an important component of bargaining?

Describe the cost benefit of buying slightly outdated products.

Answer explanation

Answers will vary, but student responses should highlight the fact that there is very little difference in quality and

performance of slightly outdated products. However, the price difference may be significant.

Would you be willing to buy some off-brand clothing if it meant that you could meet a money goal (like saving for college or a car) more quickly?

What are the most common types of consumer fraud?

Answer explanation

 Based on a survey by the Federal Trade Commission, the most common types of consumer fraud are: bogus

weight-loss products, nonexistent foreign lotteries, unauthorized buyer club enrollments, dishonest prize promotions and fraudulent work-at-home programs.