WorksheetsChapter 3 Purchasing Power
Total questions: 40
Worksheet time: 40mins
Choose the correct definition for: advertising.
Informing consumers about products and encouraging them to buy
Advertising a product or service at a low price to lure in customers and then persuading them that additional products or services are needed
False or misleading claims made about the quality, price, or purpose of a particular product
A specific consumer group who are likely to buy a product
Choose the correct definition for: comparison shopping.
Checking prices, brands, and quality among several sellers to make sure you are getting the best deal
The process of selecting goods and services based on need, want, and logical choices
Informing consumers about products and encouraging them to buy
Getting the highest value for the money spent
Choose the correct definition for: cost-plus pricing.
Setting a price based on production costs plus a markup
Setting a price based on how much consumers are willing to pay
Rising prices as a result of rising production costs
The percentage amount added to production cost to obtain the price of an item
Choose the correct definition for: cost-push inflation.
Rising prices as a result of rising production costs
Rising prices as a result of consumers wanting to buy more goods and services than producers supply
An increase in the general level of prices for goods and services
Rapidly rising prices that are out of control
Choose the correct definition for: deception.
False or misleading claims made about the quality, price, or purpose of a particular product
An illegal multilevel marketing gimmick that promises members commissions from their own sales as well as from the sales of other members they recruit
Informing consumers about products and encouraging them to buy
Advertising a product or service at a low price to lure in customers and then persuading them that additional products or services are needed
Choose the correct definition for: deflation.
A decrease in the general level of prices for goods and services
An increase in the general level of prices for goods and services
Rapidly rising prices that are out of control
Rising prices as a result of rising production costs
Choose the correct definition for: demand-pull inflation.
Rising prices as a result of consumers wanting to buy more goods and services than producers supply
Rising prices as a result of rising production costs
An increase in the general level of prices for goods and services
Rapidly rising prices that are out of control
Choose the correct definition for: economizing.
Saving as much as possible and spending money only when necessary
Getting the highest value for the money spent
The process of selecting goods and services based on need, want, and logical choices
Checking prices, brands, and quality among several sellers to make sure you are getting the best deal
Choose the correct definition for: gross domestic product (GDP).
The value of all goods and services produced in a country in a given time period
A concept that says a dollar you receive in the future will be worth less than a dollar you receive today
An increase in the general level of prices for goods and services
The percentage amount added to production cost to obtain the price of an item
Choose the correct definition for: hyperinflation.
Rapidly rising prices that are out of control
An increase in the general level of prices for goods and services
Rising prices as a result of consumers wanting to buy more goods and services than producers supply
A decrease in the general level of prices for goods and services
Choose the correct definition for: inflation.
An increase in the general level of prices for goods and services
A decrease in the general level of prices for goods and services
Rapidly rising prices that are out of control
Rising prices as a result of rising production costs
Choose the correct definition for: low-balling.
Advertising a product or service at a low price to lure in customers and then persuading them that additional products or services are needed
Informing consumers about products and encouraging them to buy
False or misleading claims made about the quality, price, or purpose of a particular product
A specific consumer group who are likely to buy a product
Choose the correct definition for: markup.
The percentage amount added to production cost to obtain the price of an item
Setting a price based on production costs plus a markup
Setting a price based on how much consumers are willing to pay
The value of all goods and services produced in a country in a given time period
Choose the correct definition for: optimizing.
Getting the highest value for the money spent
Saving as much as possible and spending money only when necessary
The process of selecting goods and services based on need, want, and logical choices
Checking prices, brands, and quality among several sellers to make sure you are getting the best deal
Choose the correct definition for: pyramid scheme.
An illegal multilevel marketing gimmick that promises members commissions from their own sales as well as from the sales of other members they recruit
False or misleading claims made about the quality, price, or purpose of a particular product
Informing consumers about products and encouraging them to buy
A specific consumer group who are likely to buy a product
Choose the correct definition for: rational buying.
The process of selecting goods and services based on need, want, and logical choices
Checking prices, brands, and quality among several sellers to make sure you are getting the best deal
Saving as much as possible and spending money only when necessary
Getting the highest value for the money spent
Choose the correct definition for: space-shifting.
Storing media on one device to be accessed from another place through another device
Recording video or audio for later viewing or listening
Informing consumers about products and encouraging them to buy
Advertising a product or service at a low price to lure in customers and then persuading them that additional products or services are needed
Choose the correct definition for: target audience.
A specific consumer group who are likely to buy a product
Informing consumers about products and encouraging them to buy
False or misleading claims made about the quality, price, or purpose of a particular product
Getting the highest value for the money spent
Choose the correct definition for: time-shifting.
Recording video or audio for later viewing or listening
Storing media on one device to be accessed from another place through another device
A concept that says a dollar you receive in the future will be worth less than a dollar you receive today
The value of all goods and services produced in a country in a given time period
Choose the correct definition for: time value of money.
A concept that says a dollar you receive in the future will be worth less than a dollar you receive today
The value of all goods and services produced in a country in a given time period
Getting the highest value for the money spent
An increase in the general level of prices for goods and services
Choose the correct definition for: value-based pricing.
Setting a price based on how much consumers are willing to pay
Setting a price based on production costs plus a markup
The percentage amount added to production cost to obtain the price of an item
Rising prices as a result of rising production costs
A cost-of-living adjustment (COLA) gives the consumer more purchasing power.
True
False
The most common type of inflation is called demand-pull.
True
False
The United States has never experienced hyperinflation.
True
False
Businesses need a normal profit in order to stay in business.
True
False
Overspending is a problem that often occurs when consumers are economizing.
True
False
Clearance and liquidation are sales techniques that involve slashing prices drastically.
True
False
Currently, the consumer’s role in the marketplace is viewed as being "buyer beware."
True
False
The Federal Trade Commission (FTC) is the federal clearinghouse for complaints of identity theft.
True
False
Repair shops often use a deceptive practice known as bait and switch.
True
False
When you have a complaint or need to solve a problem with a business, seeking legal recourse should be a last resort.
True
False
The largest percentage of gross domestic product (GDP) is:
imports
consumer spending
government spending
exports
Which of the following types of inflation is more common among products that face intense competition and have many substitutes?
disinflation
reflation
deflation
hyperinflation
An action taken by the Federal Reserve System to help stabilize the economy is known as
gross domestic product (GDP)
cost-of-living adjustment
monetary policy
fiscal policy
Which of the following pricing strategies is most likely to be used for a new technology product that incurred high research and development (R&D) costs?
cost-recovery pricing
value-based pricing
cost-plus pricing
market-based pricing
Which of the following occurs when people buy products based on desire rather than logic? (
rational buying
emotional buying
impulse buying
economizing
Which of the following selling strategies is a form of direct advertising?
social media marketing
customer loyalty programs
display advertising
telemarketing
The Kefauver-Harris Drug Amendment of 1962
requires that all drugs contain warning labels
requires drug advertising to disclose accurate information about potential side effects of medications
mandates that the U.S. Food and Drug Administration (FDA) approves drugs before they can be sold
limits the types of generic drugs that can be sold
Which of the following federal agencies regulates false or deceptive advertising?
U.S. Department of Agriculture (USDA)
Food and Drug Administration (FDA)
Federal Trade Commission (FTC)
Securities and Exchange Commission (SEC)
Which of the following schemes occurs when an "expert" financial adviser promises very high returns and then steals the money?
fake sale
pyramid scheme
Ponzi scheme
pigeon drop
