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WorksheetsReview PerFinLit Final
Total questions: 100
Worksheet time: 50mins
_____ occurs when two or more businesses in an industry agree to sell at a set price and eliminate price competition.
Nonprice competition
Price fixing
Unifying
Price ceiling
The _____ is the interest rate the Federal Reserve Banks charge commercial banks for credit when they borrow.
discount rate
federal rate
unsubsidized rate
frozen rate
What is the national debt?
The collective debt of a nation’s taxpayers.
How much a country is owed by another country..
How much is borrowed from the Federal Reserve by taxpayers at one time.
The total amount of money the government owes at one time.
When money is used for goods and services, it fulfills which economic function?
unit of value
economic indicator
medium of exchange
store of value
Which of the following refers to the Fed’s buying or selling of treasury securities in the marketplace?
open-market operations
reserve requirements
securing
monetary policies
What is the principal goal of subsidies?
To increase deficit spending.
To decrease national debt.
To benefit the public in some way.
To profit off of government-owned businesses.
How many districts make up the Federal Reserve System?
5
15
6
12
Condition in which no single seller can significantly influence the market price of a good or service.
monopolistic competition
nonprice competition
perfect competition
price competition
Market value of final goods and services produced per person.
GDP per capita
gross domestic product (GDP)
monetary policy
Making a secret agreement to engage in illegal or dishonest activities.
collusion
illusion
dilution
Occurs when the government spends more than the amount it receives in revenues.
deficit spending
consumer spending
perfect spending
optional spending
Actions the Fed takes to manage the supply of money and credit in the economy.
spending policy
monetary policy
consumer policy
taxation policy
Period of slow growth and high inflation.
stagflation
slow down inflation
post inflation
micro inflation
Purchasing of goods and services by consumers.
consumer spending
consumer inflation
consumer index
consumer retail
The ______________________________ is the total amount of money available at a given time in an economy.
money supply
demand & supply
power supply
money
A period of economic contraction that is severe and lasts a long time is a(n) ______________________________.
depression
recession
destination
deportation
A condition in which workers are employed only part-time or are overqualified for their jobs is ______________________________.
underemployment
employment
over employment
employment stagnation
When the government receives more than it spends, it is called a(n) ______________________________.
surplus
additional
caveat
Prosperity is a time period of financial ruin.
true
false
A(n) economic indicator is a piece of significant economic data that economists use to evaluate the overall health of the economy.
true
false
Which of the following is true regarding the automobile marketplace?
The automobile marketplace offers many different ways for consumers to shop.
The automobile marketplace favors sellers and offers no recourse for buyers who have been cheated. .
The automobile marketplace is an example of a monopoly.
The automobile marketplace offers very few options.
The _____ contains a list of residual values of leased cars.
American Automotive Almanac
Automotive Value Guide
American Automotive Leases Handbook
Automotive Lease Guide
The FTC Used-Car Rule does not apply to _____.
new-car dealerships
private sellers
auto superstores
used-car dealerships
Which of the following is an expense that is not actually paid, but can represent a sizeable amount of money?
fuel
depreciation
registration
maintenance
The FTC Used-Car Rules requires which of the following to be displayed on the Buyers Guide sticker?
A description of warranty coverage or lack of it
A description of how many previous owners the car had.
A description of where the car was manufactured.
A description detailing for how much the car was previously sold and repurchased.
Which of the following is true regarding lemon laws?
They do not apply to trucks, only cars.
They do not apply to used vehicles.
The help received under lemon laws is automatic and straightforward.
The problem must be well documented, as well as the attempts to fix it.
Which of the following costs is unique to leasing a car?
interest paid
finance charges
gap insurance
capitalized cost reduction
Requires a seller or manufacture of a defective vehicle either to replace or repair it or refund the buyer’s money.
certified used car
depreciation
FTC Used-Car Rule
lemon law
Term of a lease, usually 12,000 or 15,000 annually.
FTC Used-Car Rule
lemon law
Magnuson-Moss Warranty Act
mileage limitation
Price or value of a vehicle on which a lease is based.
capitalized cost
capitalized cost reduction
car warranty
certified used car
Previously owned vehicle that has received a thorough mechanical and appearance inspection along with necessary repairs and replacements.
car warranty
certified used car
depreciation
FTC Used-Car Rule
Assigned by the automobile industry; used to identify an individual automobile.
option
residual value
sticker price
vehicle identification number (VIN)
Provides protections for purchasers of any product that costs over $25 and has a manufacturer’s warranty.
Magnuson-Moss Warranty Act
mileage limitation
money factor
option
Feature available for a particular car.
option
residual value
sticker price
For new cars, the sticker price is the ______________________________, which is recommended by the manufacturer.
MSRP
AARP
SRP
MARSP
An endorsement by the ______________________________ is an indicator of reliable servicing.
American Automobile Association (AAA)
American Association (AA)
TRIPLE ACCOUNT
American Automobile (AA)
______________________________ is a publication that lists the estimated resale value of new and used cars.
Kelly blue book
edmunds
all of the above
none of the above
Before buying a car, it is wise to ______________________________ the car to see how well it handles in traffic, on the open road, and when starting, stopping, turning, and parking.
test
test drive
drivers test
optional drive
For a used car to be ______________________________, it must have gone through a thorough mechanical and appearance inspection along with necessary repairs and replacements, as well as meet age and mileage requirements.
certified
non-certified
certified with options
cars generally cost less to buy and insure.
used
slightly used
ugly
junk
A(n) ______________________________ will weigh the costs of purchasing the car against the benefits of owning it.
cost-benefit analysis
cost-benefit
cost
total cost benefit
The price or value of the vehicle on which the lease is based is the ______________________________.
capitalized cost
cost analysis
binary cost
amortization cost
The lessee’s initial costs and monthly payments are less than those of a buyer. However, the lessee does not own the car at the end of the lease term.
Explains the difference between buying a vehicle and leasing one.
Explains the balance between buying a vehicle and leasing one.
Explains the equality between buying a vehicle and leasing one.
A good reference to use when shopping for a vehicle is (any) Kelley Blue Book, Edmunds, Official Used Care Guide, Auto Safety Hot Line, Autobytel, Autotrader.com, Intellichoice, SmartMoney Auto Guide, Automobile Magazine, Car and Driver, Motor Trend, Consumer Reports, Consumer Research, and Kiplinger’s Personal Finance.
Names an example of a resource to use as references when shopping for a vehicle.
Names an non-example of a resource to use as references when shopping for a vehicle.
Names an improper example of a resource to use as references when shopping for a vehicle.
What does gap insurance do?
pays the difference between what you owe on a vehicle and what the car is worth should it be stolen or totaled in an accident.
pays less between what you owe on a vehicle and what the car is worth should it be stolen or totaled in an accident.
pays more between what you owe on a vehicle and what the car is worth should it be stolen or totaled in an accident.
Name one of the laws that protect consumers when purchasing a vehicle.
Truth in Lending Act and .
lemon laws
the Magnuson-Moss Warranty Act
None of the above
all the above
An example of a governmental program that helps satisfy basic needs is _____.
The Department of Motor Vehicles
sewer and sanitation systems
voting
city parks
Which agency’s mission is to promote consumer protection and eliminate anticompetitive business practices?
Federal Trade Commission
Federal Competition Organization
Free-Market Coalition
Consumer Protection Alliance
Of the following, which best represents a private consumer advocacy group?
Consumer Products Safety Commission
Bureau of Consumer Protection
Federal Trade Commission
Consumers Union
Who is responsible for speaking out and expressing concerns to appropriate business and governmental representatives?
competitors
governmental officials
police
consumers
Consumer self-defense strategies include which of the following?
bait and switch
sending threatening or harassing letters
seeking compensation
seeking resolution
Which of the following is true regarding consumer fraud?
It is illegal to bundle products together.
It is unethical to charge higher prices when stock in low.
It is illegal to advertise sale items that are not actually on sale.
It is unethical, though not illegal, to advertise one item and sell a different, more expensive item in its place.
When looking at promotions and sales alerts from a company, it is important to be _____.
skeptical
eager
carefree
uninterested
Fraudulent investment plan in which each participant signs up a certain number of additional participants.
pyramid scheme
redress
skepticism
Promotional offer in which prizes are awarded to participants by chance in exchange for some form of payment.
lottery
Ponzi scheme
pyramid scheme
Investment operation in which money from new investors is used to pay earlier investors.
Ponzi scheme
pyramid scheme
redress
Misrepresentation of information to consumers.
consumer fraud
consumer protection laws
Lawsuit
Offers a simple, prompt, and inexpensive way to settle minor differences involving small amounts of money.
small claims court
Ponzi scheme
pyramid scheme
Group or individual who promotes consumer rights.
consumer fraud
consumer advocate
class-action lawsuit
Civil action brought by a person against another party.
consumer protection laws
lawsuit
lottery
Latin phrase meaning let the buyer beware.
binding arbitration
caveat emptor
skepticism
Advertising one item and then substituting another item.
bait and switch
Ponzi scheme
pyramid scheme
A US letter or e-mail that promises a big return for a small investment is a(n) ______________________________.
chain letter
letter of the law
link letter
______________________________ offer the opportunity to win prizes by skill instead of chance.
game of chance
skill contests
lottery
The ______________________________ deals with health and safety issues related to food, drug, and cosmetic products.
FDA
ADA
BADA
he ______________________________ outline the rights of those who fly frequently.
airline passenger bill of rights
passenger bill of rights
airline bill of rights
claim amounts in ______________________________ are limited to a maximum of $1,200 in some states and up to $5,000 in others.
small claims court
claims court
legal court
The ______________________________ means that no one can make you buy what you do not need or want.
right of refusal
refusal
refusal rights
Governmental programs, such as ______________________________, help satisfy basic needs.
public housing
Medicare
Medicaid
Social Security
schools
education
hospitals
health care
healthcare
sewer and sanitation systems
fire protection
police protection
none of the above
or a, b and c
Consumers are responsible for choosing goods and services that will best meet their needs at prices they can pay.
true
false
In a lawsuit, the ______________________________ is the person or company against whom the legal action is brought.
consumers
defendant
plaintiff
Pyramid and Ponzi schemes are illegal and should be reported to the Federal Trade Commission and the ______________________________.
securities exchange commission
exchange commission
securities commission
What best describes a printed or electronic offer giving a discount for goods or services bought before a certain date?
rebate
customer loyalty program
coupon
clearance
The _____ of a product is the cost per weight or measure.
unit price
cost
markup
loss
What is a brick-and-mortar store?
retail store that sells construction equipment.
A retail store that sells directly from a physical location.
A retail store that supports the economy of the town in which it is located.
A retail store that also houses corporate offices.
What do nontraditional sellers do?
Nontraditional sellers sell unique and one-of-a-kind goods.
Nontraditional sellers provide goods that are not commonly sold in stores.
Nontraditional sellers provide goods and services without a brick-and-mortar location.
Nontraditional sellers provide services not commonly found at other stores.
Which of the following is not a form of nontraditional selling?
catalogs
telemarketing
online auctions
department stores
Items that do not wear out quickly.
comparison shopping
consumer cooperative
durable goods
express warranty
Nonretail association owned and operated by a group of members for their own benefit rather than for profit.
consumer cooperative
buying incentive
comparison shopping
advertising
Guarantee for service, repairs, and replacements only under certain conditions.
extended warranty
full warranty
implied warranty
limited warranty
Special offer by sellers designed to help sell goods and services.
advertising
buying incentive
comparison shopping
consumer cooperative
Clearly stated and can be written or verbal.
express warranty
extended warranty
full warranty
implied warranty
Guarantee that a product will meet certain performance and quality standards.
price
research
review
warranty
Covers servicing and repairs that may be required after the initial warranty expires.
express warranty
extended warranty
full warranty
implied warranty
Making a purchase without first considering needs, goals, or the consequences of spending money is ______________________________ and can consume a sizable amount of money over time.
impulse buying
trend buying
ultra buying
impulse spending
A(n) ______________________________ is a governmental regulation that requires certain information be placed on labels for certain products.
labeling law
tag law
label tagging
labeling
A(n) ______________________________ is a group or organization that tests products and rates them according to certain criteria.
testing and rating service
Label service
product safety and rating service
A(n) ______________________________ is a cash back offer.
rebate
Return
cash option
rebate offer
Items that are used up immediately in one use or will wear out in fewer than three years are ______________________________.
nondurable goods
durable goods
implied goods
goods
