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01.00 YOUR DECISION MAKING PROCESS

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

You take a chance and buy a lottery ticket. The possibility that you’ll lose your money is called:

a)

a. an alternative.

b)

b. a consequence.

c)

c. a risk.

d)

d. an opportunity cost.

2.

There are several different ways you could solve a problem. Your choices are called:

a)

a. alternatives.

b)

b. consequences.

c)

c. risks.

d)

d. opportunity costs.

3.

Whenever you make a decision, you have to be willing to accept the results. The results of your actions are called:

a)

a. alternatives.

b)

b. consequences.

c)

c. risks.

d)

d. opportunity costs

4.

You give up something because you want something else more. What you give up is called:

a)

a. an alternative.

b)

b. a consequence.

c)

c. a risk.

d)

d. an opportunity cost.

5.

Joe forgot to mail in his car payment on time. As a result, he has to pay a late fee. This late fee is:

a)

a. an alternative.

b)

b. a consequence.

c)

c. a risk.

d)

d. an opportunity cost

6.

Sarah decides to watch a movie instead of doing her math homework. What are some possible consequences of her decision?

4 lines
7.

The first step of the decision-making process is:

a)

a. listing your choices.

b)

b. stating the problem.

c)

c. evaluating the results of your choice.

d)

d. getting information.

8.

The last step of the decision-making process is:

a)

a. listing your choices.

b)

b. stating the problem.

c)

c. evaluating the results of your choice.

d)

d. getting information.

9.

Matt is one of the friendliest students at school. He is always talking to someone about sports or movies. He thinks he needs a cell phone. His parents say a cell phone is too expensive. Can you help Matt decide if he should buy a cell phone?

What are two kinds of information that Matt needs to make his decision?

4 lines
10.

Matt is one of the friendliest students at school. He is always talking to someone about sports or movies. He thinks he needs a cell phone. His parents say a cell phone is too expensive. Can you help Matt decide if he should buy a cell phone?

If Matt decides not to buy a cell phone, what is an alternative choice he can make?

4 lines
11.

You do what everyone else is doing.

a)

a. synthesis

b)

b. compliance

c)

c. procrastination

d)

d. agonizing

12.

You choose the first thing that you think of.

a)

a. procrastination

b)

b. agonizing

c)

c. spontaneity

d)

d. avoidance

13.

You wait too long to decide.

a)

a. compliance

b)

b. procrastination

c)

c. spontaneity

d)

d. desire

14.

You are confused by too much information.

a)

a. agonizing

b)

b. security

c)

c. synthesis

d)

d. desire

15.

You choose a safe, less risky option.

a)

a. security

b)

b. spontaneity

c)

c. desire

d)

d. synthesis

16.

People paying money for goods and services is called:

a)

a. the unemployment rate.

b)

b. consumer spending.

c)

c. income risk.

d)

d. interest rates.

17.

When prices go up, it is called:

a)

a. personal risk.

b)

b. income risk.

c)

c. inflation.

d)

d. consumer spending.

18.

The number of people out of work is called:

a)

a. inflation.

b)

b. interest-rate risk.

c)

c. consumer prices.

d)

d. the unemployment rate.

19.

The amount you pay to borrow money is called:

a)

a. income risk

b)

b. consumer spending

c)

c. interest rate

d)

d. personal risk

20.

The chance that you might earn less money is called:

a)

a. consumer prices.

b)

b. inflation risk.

c)

c. interest-rate risk.

d)

d. income risk.

21.

The three types of factors that affect consumer purchases are social, economic and ________.

a)

necesary

b)

optional

c)

geographic

d)

personal

22.

Branding and prices are influences that fall under _________ factors.

a)

economic

b)

social

c)

personal

d)

influential

23.

If Lay's Potato Chips come in a family size bag of 10.25 ounces for $4.69, what is the unit price?

a)

$2.19/lb.

b)

$0.46/oz.

c)

$2.19/oz

d)

$0.46/lb.

24.

If you can buy:


a) Utz Big Bag of Potato Chips: 14.5 oz. for $3.53

b) Lay's Party Size Bag of Chips: 15.25 oz. for $3.79


Which is the better buy?

a)

Utz Big Bag

b)

Lay's Party Size

25.

When do most stores have sales?

a)

back to school and summer

b)

right before the season begins

c)

back to school and in the middle of seasons

d)

spring break and winter break

26.

What is the price range for small claims court cases?

a)

$500 -10,000

b)

$1,000 - 5,000

c)

$500 - 5,000

d)

$100 - 1,000

27.

When dissatisfied with a product and seeking satisfaction, your last resort should be to:

a)

return to the place you made the purchase

b)

take legal action

c)

contact the Better Business Bureau

d)

contact the product's manufacturer

28.

When comparing two products, you need to consider both _________ and _________. Choose TWO!

a)

quality

b)

store you're buying from

c)

favorite color

d)

price

29.

According to step 1 in the research-based approach to purchases, before you make a major purchase, you need to identify your needs and ________________.

a)

see if there is a full refund available.

b)

ask yourself if you can rent it temporarily.

c)

gather product information.

d)

determine if you will pay with cash or credit.

30.

What is the main reason that brand names cost more money than generic (store) brands?

a)

they are more popular

b)

you are paying the advertising costs of the company

c)

you get more of the product

d)

They don't cost more.

31.

A benefit of making a purchase at a convenience store is:

a)

fewer options.

b)

higher prices.

c)

level of customer service.

d)

fast service.

32.

Which type of warranty only covers a product under specific circumstances (period of time, certain parts)?

a)

full

b)

limited

c)

discounted

d)

implied

33.

Which type of warranty maintains that a product should be able to do what it is intended for?

a)

full

b)

limited

c)

discounted

d)

implied

34.

What is a drawback of a class action lawsuit?

a)

It's cheaper, since lawyer fees are shared

b)

The potential settlement could be higher

c)

It's a quick and easy process

d)

A lot of people are needed in order to pursue it

35.

The right to redress refers to the idea that a consumer can:

a)

seek reimbursement or exchange for an unworthy product

b)

exchange clothing items when they get sick of them

c)

seek product information

d)

change into newly purchases clothes before leaving the store

36.

Determine if the following is legal or illegal:


Bait and Switch

a)

Legal

b)

Illegal

37.

Determine if the following is legal or illegal:


Pyramid Scheme

a)

Legal

b)

Illegal

38.

Determine if the following is legal or illegal:


Manufacturer's Suggested Retail Price (MSRP)

a)

Legal

b)

Illegal

39.

Determine if the following is legal or illegal:


Loss Leader

a)

Legal

b)

Illegal

40.

Determine if the following is legal or illegal:


Trading Up

a)

Legal

b)

Illegal