Unit 6 Review

Which of these is an example of conspicuous consumption?

• Buying a slightly larger computer monitor

• Buying an $60,000 car when a $20,000 car would meet your needs

• Upgrading your phone one year after the newest version is released

• Shopping at a thrift store.

Rebates and warranties are examples of _____________________, which are designed to encourage you to make a purchase.

• discretionary spending

• marginal costs

• sales incentives

• marginal benefits

______________ are the the additional costs (i.e., what one must give up) that result from getting one more of something.

• Marginal Costs

• Marginal Benefits

• Discretionary funds

• Needs

The _________________ can be used to check on a business and make sure they are reputable.

• Consumer Education Center

• Firelands Economic Association

• Better Business Bureau

• Confidence Business Analyst Society

Companies try to get consumers to spend money on their products by promoting a particular good or service to consumers. This is called ____________________.

• education.

• advertising.

• unethical.

• marketing.

All of the following are examples of anticipated expenses except _____________________.

• medical bills.

• rent.

• utility bills.

• groceries.

A ________________ is a regular payment, often at monthly or biweekly intervals, made by an employer to an employee, especially in the case of professional or white-collar employees

• salary

• bonus

• grant

• hourly wage

Unanticipated income are payments received that are not foreseen or may happen at irregular intervals. These can include bonuses and gifts.

• Truie

• False

Unanticipated expenses could result from ___________ —such as a sick pet, a broken tooth, a flat tire, or a ruined pair of shoes—which cannot be ignored.

• variable costs

• emergencies

• poor money management

• scarcity

The largest fixed expense for a homeowner would be the _______________.

• Electric bill

• Natural gas bill

• Homeowner's insurance

• Mortgage paymnet