Quiz about Financial Literacy Chapter 5

Question 1

Price divided by the number of units.

Accepted Answer

Unit price

Answer

Market size

Answer

Sales tax

Answer

Tip

Question 2

Extra payment made voluntarily to a worker.

Accepted Answer

Tip

Answer

Sales tax

Answer

Rebate

Answer

Unite price

Question 3

Usually a flat rate applied to the sales price of a good or service.

Accepted Answer

Sales tax

Answer

Installment plan

Answer

Charge account

Answer

Coupon

Question 4

Number of buyers for a product.

Accepted Answer

Market size

Answer

Payment card

Answer

Contract

Answer

Rebate

Question 5

Paying for a purchase in small amounts over time.

Accepted Answer

Installment Plan

Answer

Coupon

Answer

Rebate

Answer

Market size

Question 6

Customer receives a good or service and promises to pay at a later date.

Accepted Answer

Charge account

Answer

Contract

Answer

Installment plan

Answer

Unit price

Question 7

Used to make a purchase instead of cash.

Accepted Answer

Payment card

Answer

Installment plan

Answer

Coupon

Answer

Tip

Question 8

Formal agreement between two or more people or organizations.

Accepted Answer

Contract

Answer

Installment plan

Answer

Charge account

Answer

Market size

Question 9

Discount given after a purchase.

Accepted Answer

Rebate

Answer

Coupon

Answer

Contract

Answer

Tip

Question 10

Discount given before a purchase.

Accepted Answer

Coupon

Answer

Rebate

Answer

Installment plan

Answer

Unit price

Question 11

There are many types of markets because there are many goods and services to trade.

Accepted Answer

True

Answer

False

Question 12

Market size refers to the number of sellers for a product or service.

Accepted Answer

False

Answer

True

Question 13

A coupon is a certificate that grants a discount to the customer.

Accepted Answer

True

Answer

False

Question 14

A rebate is usually a smaller discount than a coupon.

Accepted Answer

False

Answer

True

Question 15

A payment card is any card used to make a purchase in place of cash.

Accepted Answer

True

Answer

False

Question 16

A credit limit is the dollar amount you can owe on your charge account.

Accepted Answer

True

Answer

False

Question 17

With an installment plan, you pay for your purchase in small amounts over time.

Accepted Answer

True

Answer

False

Question 18

Online bill pay is more expensive than payment by mail.

Accepted Answer

False

Answer

True

Question 19

Unit pricing is helpful when determining which brand of product to buy.

Accepted Answer

False

Answer

True

Question 20

The purpose of a contract is to guarantee that the buyer pays a fair price.

Accepted Answer

False

Answer

True

Question 21

Buyers and sellers meet in a market to exchange ________________.

Accepted Answer

goods, services, and information

Answer

only goods

Answer

only services

Answer

only information

Question 22

Market size refers to _____________.

Accepted Answer

the number of buyers of a product or service

Answer

the unit pricing of a product or service

Answer

the number of sellers of a product or service

Answer

the number of dealers in a particular area

Question 23

What is not an example of a market?

Accepted Answer

Online bill pay

Answer

Supermarket

Answer

eBay

Answer

Garage sale

Question 24

A rebate is ________________.

Accepted Answer

a discount given after an item is purchased

Answer

the same as a coupon

Answer

a discount given before an item is purchased

Answer

generally smaller than a coupon

Question 25

A tip is _________________.

Accepted Answer

an extra payment made voluntarily to a worker

Answer

mandatory at restaurants

Answer

rarely given because most people use debit or credit cards

Answer

rarely given because it is generally not expected

Question 26

Which of the following is not a payment card?

Accepted Answer

Digital cash

Answer

Gift card

Answer

Credit card

Answer

Debit card

Question 27

An agreement where you pay for a purchase in small amounts over time is called a(n) __________________.

Accepted Answer

installment plan

Answer

extended plan

Answer

time plan

Answer

All of the above

Question 28

A unit price is equal to _________________.

Accepted Answer

price divided by the number of units

Answer

price plus the number of units

Answer

price multiplied by the number of units

Answer

number of units divided by price

Question 29

Sales tax _________________.

Accepted Answer

All of the above

Answer

is usually a flat rate

Answer

varies from state to state

Answer

does not always apply to everything that is purchased

Question 30

A charge account is an arrangement where a _____________.

Accepted Answer

customer receives a good or service and pays for it later

Answer

customer pays for a good or service and receives it later

Answer

credit limit does not apply for a large purchase

Answer

creditworthy customer usually has no credit limit

Question 31

A(n) _____________________ is an arrangement that allows buyers and sellers to meet to exchange goods, services, or information.

Accepted Answer

market

Answer

contract

Answer

warranty

Answer

garage sale

Question 32

The number of buyers for a product is the ______________________________.

Accepted Answer

market size

Answer

tip

Answer

supermarket

Answer

installment plan

Question 33

A(n) _______________________ is an extra payment made voluntarily to a worker.

Accepted Answer

tip

Answer

warranty

Answer

debit card

Answer

rebate

Question 34

A formal agreement between two or more people or organizations is a(n)

Accepted Answer

Contract

Answer

Rebate

Answer

Warranty

Answer

Extended plan

Question 35

A(n) _________________________ is a guarantee that an item will meet certain standards for a specified period of time.

Accepted Answer

Warranty

Answer

Contract

Answer

Rebate

Answer

Installment plan

Question 36

What is the purpose of a market?

Accepted Answer

It enables buyers and sellers to meet to exchange foods, services, or information.

Answer

To earn more sales tax.

Answer

Making an agreement where you pay for purchases in small amounts over time.

Answer

Diving the price by the number of units

Question 37

Who is responsible for collecting sales tax?

Accepted Answer

The store or business making the sale collects the tax.

Answer

The individual making the purchase collects the tax.

Answer

Varies from state to state.

Answer

No sales tax needs to be collected.

Question 38

Is unit pricing best used as a tool to determine which brand of a product to buy?

Accepted Answer

No. It's best used to determine which size to buy.

Answer

Yes. It's best used to determine which brand to buy

Answer

Yes. The number of units is multiplied by price.

Answer

No. It's a flat rate applied to the sales price.

Question 39

Arthur buys a bottle of detergent for $10.79 and uses a $1.50 coupon. What is the final cost after a sales tax of 4.0%?

Accepted Answer

$9.66

Answer

$9.29

Answer

$11.22

Answer

$13.60

Question 40

What is the final cost of a $149.99 computer printer after a 5.0% sales tax and a $25.00 rebate?

Accepted Answer

$132.49

Answer

$157.49

Answer

$124.99

Answer

$174.99

Question 41

Harry buys a ream of computer paper priced at $9.99 before a 6.0% sales tax. He uses a coupon at checkout for a 10% discount. After the purchase, he mails in a form for a $5.00 rebate. What is Harry's final cost?

Accepted Answer

$5.29

Answer

$4.53

Answer

$4.59

Answer

$4.99

Question 42

What is the final amount of a $43.56 restaurant bill after a 15% tip and 6.0% sales tax?

Accepted Answer

$52.70

Answer

$53.10

Answer

$50.09

Answer

$43.17

Question 43

Suppose you buy four pairs of socks at $4.99 each with a 4.0% sales tax. You pay with two $20 bills. How much do you receive in change?

Accepted Answer

$19.24

Answer

$20.76

Answer

$14.81

Answer

$34.81

Question 44

Bart has a charge account at a local craft store with a $1,000 credit limit. This month he makes purchases of $69.00, $512.35, and $112.79 before a sales tax of 5%. What is Bart's available credit after making these purchases?

Accepted Answer

$271.15

Answer

$728.84

Answer

$305.86

Answer

$321.15

Question 45

Sarah buys an item for $499.89 and places it on layaway. The layaway fee is 8% of the price of the item. What is the amount of the layaway fee?

Accepted Answer

$39.99

Answer

$539.88

Answer

$43.19

Answer

$459.90

Question 46

The price of a 50-pound bag of dog food is $39.98. What is the unit price (price per pound)?

Accepted Answer

$0.80

Answer

$19.99

Answer

$1,999

Answer

$80

Question 47

Wendy signs a one-year contract at a fitness club for $59 a month plus a $35 registration fee. What is the total cost of the contract for one year?

Accepted Answer

$743.00

Answer

$94

Answer

$1,128

Answer

$708.00

Question 48

Two cans of coffee are priced as follows: 12 ounces for $5.79 and 2 pounds for $13.49. What is the cost per ounce of the can that is the better buy?

Accepted Answer

$0.42

Answer

$6.75

Answer

$0.48

Answer

$1.38

Question 49

Identify two differences between coupons and rebates. (CHOOSE TWO)

Accepted Answer

Rebates are collected after the sale and coupons are used at the time of the sale.

Accepted Answer

Rebate amounts are typically more than coupons.

Answer

Coupon value is a retail price divided by the number of units.

Answer

Coupon amounts are typically higher than rebates.

Question 50

Identify at least two major details that are defined in a contract. CHOOSE TWO

Accepted Answer

Services provided

Accepted Answer

Length of agreement

Answer

Meeting to exchange goods/services.

Answer

<p>Sales tax</p>

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