WorksheetsUnit 3 Test Review
Total questions: 30
Worksheet time: 15mins
Name
Class
Date
1.
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)
A. Authority, Social Proof, Scarcity
b)
B. Reciprocity, Commitment, Liking
c)
C. Social Proof, Reciprocity, Commitment
d)
D. Liking, Authority, Reciprocity
2.
2. The agency where people can file complaints or reports of identity theft is the
a)
A. Securities and Exchange Commission (SEC)
b)
B. Consumer Product Safety Commission (CPSC)
c)
C. Consumers Union (CU)
d)
D. Federal Trade Commission (FTC)
3.
3. Which of the following best describes the role of federal and private consumer protection agencies in the United States?
a)
A. Federal agencies, like the Federal Trade Commission (FTC), enforce consumer protection laws nationwide, while private agencies primarily handle complaints without legal authority.
b)
B. Private consumer protection agencies have the sole authority to enforce consumer protection laws, while federal agencies only provide recommendations.
c)
C. Both federal and private consumer protection agencies enforce laws through legal action and regulate industries directly.
d)
D. Private agencies are responsible for setting national consumer protection standards, while federal agencies work to promote consumer education.
4.
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)
A. Federal Trade Commission (FTC)
b)
B. Consumer Financial Protection Bureau (CFPB)
c)
C. Food and Drug Administration (FDA)
d)
D. Better Business Bureau (BBB)
5.
5. Which action would best help Jordan protect himself from potential risks when shopping online?
a)
A. Ignore security warnings and complete the purchase quickly.
b)
B. Provide all requested personal information to confirm the order.
c)
C. Check that the website has a secure “https://” address before entering payment information.
d)
D. Use public Wi-Fi to make the purchase since it’s faster and convenient.
6.
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)
A. Reciprocity, Commitment, Social Proof
b)
B. Authority, Scarcity, Liking
c)
C. Commitment, Liking, Scarcity
d)
D. Reciprocity, Authority, Social Proof
7.
7. How can the Federal Trade Commission (FTC) and the Office of Consumer Protection help consumers safeguard themselves against fraud?
a)
A. By prosecuting all fraudulent businesses on behalf of individual consumers
b)
B. By providing resources, fraud alerts, and complaint filing systems to help consumers identify and report scams
c)
C. By directly refunding consumers for all fraudulent transactions they experience
d)
D. By requiring businesses to get approval from the FTC before selling products to consumers
8.
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)
A. any service fees or other costs added to the price
b)
B. the annual percentage rate
c)
C. the total finance charge and method of computing it
d)
D. all of these
9.
9. Which of the following best describes a "dark pattern" in advertising?
a)
A. A design strategy that helps users easily find information on a website
b)
B. A tactic used to encourage users to make informed choices
c)
C. A manipulative design technique intended to influence users into actions they may not want to take
d)
D. A way to organize advertisements to increase engagement through honest messaging
10.
10. Which of the following best explains how a consumer can use the Better Business Bureau (BBB) to make an informed purchasing decision?
a)
A. The BBB sets legal regulations for all businesses and enforces consumer protection laws.
b)
B. The BBB provides customer reviews, business ratings, and complaint histories to help consumers evaluate businesses.
c)
C. The BBB guarantees refunds for any purchase made from an accredited business.
d)
D. The BBB automatically compensates consumers for any disputes with businesses.
11.
11. Zach receives a notification from the IRS that he owes money. Which of the following indicates that the notification is real and not a scam?
a)
A. The IRS calls him and demands he pay taxes he owes within 24 hours
b)
B. The IRS sends him a formal letter in the mail notifying him of taxes he owes
c)
C. The IRS texts him from an unknown number
d)
D. The IRS threatens to send local law enforcement if he does not send the money he owes in a timely manner
12.
12. Which type of identity theft is MOST prevalent for people age 19 and under?
a)
A. Bank fraud
b)
B. Employment or tax-related fraud
c)
C. Loan or lease fraud
d)
D. Phone or utilities fraud
13.
13. Which of the following is TRUE about scams?
a)
A. You are guaranteed to get your money back from a scam by filing a claim with your local police department
b)
B. Scams today most commonly occur through paper mail you receive
c)
C. There are a number of red flags you can be aware of that can help you avoid being scammed
d)
D. Young people don’t have to worry about being targeted for scams unless they have a bank account
14.
14. Tara is looking for a new winter coat and has found one in her price range that she really likes. However, she is unfamiliar with the brand and is unsure how long the coat will last. Which of the following factors might help Tara find the information she’s looking for?
a)
A. Customer reviews
b)
B. Current sales and discounts that the company is offering
c)
C. The brand’s return policy
d)
D. Whether or not the company accepts her credit card
15.
15. Sean received a notification that his information was compromised and he is likely a victim of identity theft. Sean should take all of the following steps EXCEPT…
a)
A. Place an extended fraud alert or security freeze on his credit
b)
B. File an identity theft report with the Federal Trade Commission
c)
C. Enable Two-Factor Authentication on his accounts for added security
d)
D. Wait for 90 days before contacting the Federal Trade Commission to see if they catch the fraudulent behavior
16.
16. What is a potential benefit of comparison shopping?
a)
A. You are guaranteed to find a product that meets every criteria that is important to you
b)
B. Stores provide a significant discount if they know you took a lot of time to find the best deal
c)
C. You are more likely to find a product that best fits within your budget
d)
D. You qualify for a store’s reward program if you take the time to comparison shop on a frequent basis
17.
17. Three days ago, Niko used his credit card to buy a new jacket he found through a social media ad. He still has not gotten a receipt of payment or confirmation email regarding the purchase and he’s starting to suspect he was scammed. What is the next BEST thing Niko should do?
a)
A. Wait for his bank to identify the fraudulent charge and reach out to him within 7 days of the purchase
b)
B. Report the fraudulent charge to his bank and ask them to reverse the transaction
c)
C. Wait to see if the transaction shows up on his next credit card statement
d)
D. Try to contact the vendor to see if they can reverse the transaction
18.
18. Which of these students is doing a POOR job of protecting themselves against identity theft?
a)
A. Wynn: “I just requested copies of my annual credit report.”
b)
B. Beatrice: “I have a calendar reminder to check my bank account balance once a week for charges.”
c)
C. David: “I use the same login credentials for all my bank accounts to keep my finances organized together.”
d)
D. Sonia: “I use 2-factor authentication on my mobile device for all my logins.”
19.
19. The two major signs of a scam are a request for personal information and
a)
A. A free 30 day trial of a product or service
b)
B. A coupon code offered for a current sale
c)
C. A request to like and subscribe an account on social media
d)
D. An urgent need for money
20.
20. In which of the following scenarios does it make the MOST sense for the person to comparison shop?
a)
A. Maxine is at her local grocery store and decides to buy a pack of gum at the register
b)
B. Vivek is stopping by a cafe before school to get coffee and a bagel
c)
C. Esperanza’s old phone broke and she is looking to buy a new one
d)
D. Nghia is on his way to a friend’s birthday party and needs to purchase a card
21.
21. Price matching is when
a)
A. A store sends you a coupon for an item in your cart to encourage you to buy it sooner
b)
B. A store agrees to match the lower price of an identical item that is being offered at another retailer
c)
C. A store lets you know ahead of time that an item you’re interested in will be on sale in the next week
d)
D. A store agrees to match the lower price you bought an item at in the past
22.
24. If you believe you are a victim of fraud and are seeking compensation, which of the following actions should you take first?
a)
A. Contact the alleged fraudster directly and demand immediate repayment.
b)
B. Report the fraud to a consumer protection agency, such as the Federal Trade Commission (FTC), and gather any documentation to support your claim.
c)
C. File a lawsuit in small claims court before contacting any other authorities.
d)
D. Change your bank account information and wait to see if the fraud stops.1
23.
25. How does advertising primarily affect consumer behavior?
a)
A. It provides unbiased information that allows consumers to make the best purchasing decisions.
b)
B. It creates awareness of products and services and can influence consumer preferences and purchasing decisions.
c)
C. It reduces the variety of choices available to consumers by limiting market competition.
d)
D. It ensures that consumers always make rational, well-informed purchasing decisions.
24.
26. Before buying a new laptop, Maya compares prices at several stores, reads customer reviews, and checks the warranty details.
Which factors is Maya considering that consumers commonly evaluate before purchasing goods or services?
a)
A. Brand loyalty and advertising laws
b)
B. Price, product quality, and warranty coverage
c)
C. Government regulations and import taxes
d)
D. Store location and company ownership
25.
27. Sofia receives a text message from her bank. All of the following indicate that the text may actually be a scam EXCEPT…
a)
A. The text message asks her to call the number that is on the back of her debit card
b)
B. The text message has a few spelling errors in the body of the text
c)
C. The text message includes a link that starts with “http”
d)
D. The text message indicates that she will lose a significant amount of money if she does not respond within 1 hour
26.
28. A family buys a new car for $25,000. After the purchase, they also pay for fuel, regular maintenance, insurance, and parking fees.
Which statement best describes the additional costs the family pays?
a)
A. They are direct costs because they are part of the car’s purchase price.
b)
B. They are indirect costs because they are ongoing expenses related to owning and using the car.
c)
C. They are one-time costs included in the financing of the vehicle.
d)
D. They are hidden costs charged only by the dealership.
27.
29. Emma buys a new smartphone for $800. She also pays $10 per month for a phone case, $15 per month for insurance, and spends $5 on a charging cable.
Which of these are examples of direct costs?
a)
A. $800 for the smartphone
b)
B. $10 per month for the phone case
c)
C. $15 per month for insurance
d)
D. $5 for the charging cable
28.
30. Liam is considering buying a $1,200 gaming console. He realizes he will also spend money on games, online subscriptions, and electricity to run it. Which statement best shows the difference between direct and indirect costs in this situation?
a)
A. Direct costs are the $1,200 console; indirect costs are the games, subscriptions, and electricity.
b)
B. Direct costs are the games and subscriptions; indirect costs are the console price.
c)
C. Both console price and subscriptions are direct costs; electricity is not a cost.
d)
D. There are no indirect costs because the console is a one-time purchase.
29.
31. Alex sees an online ad for a “buy one, get one free” pizza deal. When he goes to the restaurant, he discovers the deal only applies to small pizzas on certain days.
What should consumers do to avoid being misled by advertisements like this?
a)
A. Trust every ad because businesses always provide accurate information
b)
B. Read all the details, fine print, and terms of the offer before making a purchase
c)
C. Only buy products that are advertised on social media
d)
D. Avoid all promotions and discounts because they are always misleading
30.
32. A company advertised that its weight-loss supplement was “clinically proven to help you lose 20 pounds in a month,” but independent testing showed these claims were false. The government investigated and found the company guilty of fraud.
Which statement best describes the role of consumer protection laws in this situation?
a)
A. Laws prevent consumers from ever buying products that don’t work.
b)
B. Laws punish companies that commit fraud and help protect consumers from false claims.
c)
C. Laws allow companies to make any claims as long as they sell a lot of products.
d)
D. Laws require consumers to check the truth of every claim themselves.
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