Unit 3 Test Review

1. A new commercial for a fitness app shows hundreds of people achieving their goals while using it and features a famous athlete praising the program. The ad also says, “Sign up today—spots are limited!” Which influence strategies is this ad primarily using?

• A. Authority, Social Proof, Scarcity
• B. Reciprocity, Commitment, Liking
• C. Social Proof, Reciprocity, Commitment
• D. Liking, Authority, Reciprocity

2. The agency where people can file complaints or reports of identity theft is the

• A. Securities and Exchange Commission (SEC)
• B. Consumer Product Safety Commission (CPSC)
• C. Consumers Union (CU)
• D. Federal Trade Commission (FTC)

3. Which of the following best describes the role of federal and private consumer protection agencies in the United States?

• A. Federal agencies, like the Federal Trade Commission (FTC), enforce consumer protection laws nationwide, while private agencies primarily handle complaints without legal authority.
• B. Private consumer protection agencies have the sole authority to enforce consumer protection laws, while federal agencies only provide recommendations.
• C. Both federal and private consumer protection agencies enforce laws through legal action and regulate industries directly.
• D. Private agencies are responsible for setting national consumer protection standards, while federal agencies work to promote consumer education.

4. Maria recently applied for a new credit card and later discovered that the company charged her several hidden fees that were not clearly listed in the agreement. She wants to report this issue to the agency that regulates financial products and ensures clear disclosure of fees and interest rates.

• A. Federal Trade Commission (FTC)
• B. Consumer Financial Protection Bureau (CFPB)
• C. Food and Drug Administration (FDA)
• D. Better Business Bureau (BBB)

5. Which action would best help Jordan protect himself from potential risks when shopping online?

• A. Ignore security warnings and complete the purchase quickly.
• B. Provide all requested personal information to confirm the order.
• C. Check that the website has a secure “https://” address before entering payment information.
• D. Use public Wi-Fi to make the purchase since it’s faster and convenient.

6. A company offers a free sample of a new snack at a grocery store. Later, the salesperson encourages customers to sign up for a subscription box, suggesting that “people who try the sample usually love it and stick with it.” Which influence strategies are being used to encourage consumers to buy the subscription?

• A. Reciprocity, Commitment, Social Proof
• B. Authority, Scarcity, Liking
• C. Commitment, Liking, Scarcity
• D. Reciprocity, Authority, Social Proof

7. How can the Federal Trade Commission (FTC) and the Office of Consumer Protection help consumers safeguard themselves against fraud?

• A. By prosecuting all fraudulent businesses on behalf of individual consumers
• B. By providing resources, fraud alerts, and complaint filing systems to help consumers identify and report scams
• C. By directly refunding consumers for all fraudulent transactions they experience
• D. By requiring businesses to get approval from the FTC before selling products to consumers

8. The Truth in Lending Act requires which of the following to be put in writing before a loan or credit agreement is signed?

• A. any service fees or other costs added to the price
• B. the annual percentage rate
• C. the total finance charge and method of computing it
• D. all of these

9. Which of the following best describes a "dark pattern" in advertising?

• A. A design strategy that helps users easily find information on a website
• B. A tactic used to encourage users to make informed choices
• C. A manipulative design technique intended to influence users into actions they may not want to take
• D. A way to organize advertisements to increase engagement through honest messaging

10. Which of the following best explains how a consumer can use the Better Business Bureau (BBB) to make an informed purchasing decision?

• A. The BBB sets legal regulations for all businesses and enforces consumer protection laws.
• B. The BBB provides customer reviews, business ratings, and complaint histories to help consumers evaluate businesses.
• C. The BBB guarantees refunds for any purchase made from an accredited business.
• D. The BBB automatically compensates consumers for any disputes with businesses.