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Chapter 3: Purchasing Power

Total questions: 40

Worksheet time: 40mins

Name
Class
Date
1.

Rapidly rising prices that are out of control.

a)

disinflation

b)

deflation

c)

hyperinflation

d)

inflation

2.

High prices followed by drops and then high prices again.

a)

reflation

b)

inflation

c)

deflation

d)

hyperinflation

3.

Rising prices due to scarce resources or increased difficulty in obtaining resources.

a)

demand-pull inflation

b)

cost-push inflation

c)

reflation

d)

real-cost inflation

4.

A decrease in the general level of prices for goods and services.

a)

inflation

b)

deflation

c)

reflation

d)

hyperinflation

5.

Rising prices as a result of consumers wanting to buy more goods and services than producers supply.

a)

demand-pull inflation

b)

cost-push inflation

c)

real-cost inflation

d)

time value of money

6.

Rising prices with the rate of increase slowing down.

a)

deflation

b)

reflation

c)

disinflation

d)

inflation

7.

An increase in the general level of prices for goods and services.

a)

reflation

b)

inflation

c)

hyperinflation

d)

deflation

8.

A concept that says a dollar you receive in the future will be worth less than a dollar you receive today.

a)

time value of money

b)

productivity

c)

real-cost inflation

d)

cost-push inflation

9.

Rising prices as a result of producers' costs increasing.

a)

demand-pull inflation

b)

real-cost inflation

c)

time value of money

d)

cost-push inflation

10.

Prices set to be competitive with prices of similar products.

a)

market-based pricing

b)

cost-plus pricing

c)

value-based pricing

d)

cost-recovery pricing

11.

Prices are set based on what consumers are willing to pay.

a)

cost-plus pricing

b)

value-based pricing

c)

cost-recovery pricing

d)

market-based pricing

12.

Percentage added to the cost of an item.

a)

markup

b)

retail price

c)

cost

d)

profit

13.

Purchasing something on the spur of the moment without thinking.

a)

rational buying

b)

emotional buying

c)

impulse buying

d)

optimizing

14.

Profit that allows a business to survive and grow.

a)

normal profit

b)

markup

c)

optimizing

d)

economizing

15.

Saving as much as possible and spending money only when necessary.

a)

optimizing

b)

normal profit

c)

economizing

d)

markup

16.

The process of selecting goods and services based on need, want, and logical choices.

a)

emotional buying

b)

impulse buying

c)

economizing

d)

rational buying

17.

An introductory price set high to recover R&D costs.

a)

cost-recovery pricing

b)

cost-plus pricing

c)

market-based pricing

d)

value-based pricing

18.

The process of purchasing products based on desire rather than logic.

a)

rational buying

b)

emotional buying

c)

impulse buying

d)

economizing

19.

Setting a price based on a production cost plus markup.

a)

cost-recovery pricing

b)

market-based pricing

c)

value-based pricing

d)

cost-plus pricing

20.

Getting the highest value for your money.

a)

optimizing

b)

economizing

c)

emotional buying

d)

impulse buying

21.

Distributing product information directly to customers.

a)

direct advertising

b)

transit advertising

c)

advertising

d)

social media advertising

22.

Offering low everyday prices, generally lower than competitors.

a)

brand pricing

b)

discount pricing

c)

quality pricing

d)

target pricing

23.

Internet ads that open a new window in front of the web page being viewed.

a)

banner ads

b)

direct ads

c)

pop-up ads

d)

transit ads

24.

Print ads or signs on public transportation.

a)

direct advertising

b)

transit advertising

c)

social media advertising

d)

advertising

25.

Informing consumers about products and encouraging them to buy.

a)

advertising

b)

transit advertising

c)

social media advertising

d)

direct advertising

26.

Process of checking prices among several sellers.

a)

target shopping

b)

brand shopping

c)

comparison shopping

d)

transit shopping

27.

Carrying well-known brand names to attract customers who are loyal to those brands.

a)

advertising strategy

b)

target strategy

c)

branding strategy

d)

direct strategy

28.

A specific group of people who are likely to buy a product.

a)

target audience

b)

advertising

c)

comparison shopping

d)

branding strategy

29.

Internet ads that span the top, bottom, or sides of a web page.

a)

pop-up ads

b)

banner ads

c)

transit ads

d)

advertising

30.

Customers are encouraged to return to a business through incentives.

a)

target audience

b)

branding strategy

c)

customer loyalty

d)

comparison shopping

31.

Information on products advising consumers about risks and safety issues.

a)

Warning label

b)

infomercial

c)

pyramid scheme

d)

deception

32.

False claims about a product.

a)

bait and switch

b)

low-balling

c)

deception

d)

Ponzi scheme

33.

Copying the contents from one form of media to another for personal use.

a)

bait and switch

b)

space-shifting

c)

time-shifting

d)

low-balling

34.

A lengthy paid TV ad that includes testimonials, demonstrations, and introductory prices.

a)

Ponzi scheme

b)

deception

c)

pigeon drop

d)

infomercial

35.

Recording video or audio for later viewing or listening.

a)

bait and switch

b)

space-shifting

c)

time-shifting

d)

low-balling

36.

Advertising a basic service at an unusually low price and then claiming additional services or repairs are needed.

a)

space-shifting

b)

low-balling

c)

time-shifting

d)

deception

37.

A fraudulent investment operation in which money from new investors is used to pay off earlier investors.

a)

deception

b)

pyramid scheme

c)

pingeon drop

d)

Ponzi scheme

38.

Advertising a bargain product with the intent of persuading consumers to buy a more expensive product once in the store.

a)

bait and switch

b)

infomerical

c)

warning label

d)

deception

39.

Illegal multilevel marketing gimmick that promises commissions on one's own sales as well as on the sales of recruits.

a)

pigeon drop

b)

deception

c)

Ponzi scheme

d)

pyramid scheme

40.

A con artist convinces a person to give up his or her money in return for a share of a larger sum of money.

a)

pigeon drop

b)

Ponzi scheme

c)

pyramid scheme

d)

deception