chapter 7 Flashcards
In certain circumstances, it is okay to stretch the truth to get a bargain(t/f)
false
The Federal Trade Commission found that people who reported having more debt than they could handle were more likely to be victims of consumer fraud involving
credit repair and debt consolidation
Making informed choices as a consumer will usually yield savings(t/f)
true
Most of the items at a pawnshop are stolen(t/f)
false
Joe tries to bargain at an electronics store but is unable to negotiate the price down. What should be his next step?
walk away
When buying things at an auction, it is important that you
all of the above
Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
forclosure
The process of quantifying costs and benefits of a decision
cost-benefit analysis
“The Lucky Sevenʺ rules can get you incredible deals on the stuff you buy every day, but they only work if you:
use them
Which of the following statements is false about bargening
Your choices as a consumer have no impact on the larger social environment.
To bargain for a lower price
neogatiate
Excluding the United States, most countries use negotiating as a way of life(t/f)
true
Shopping for bargains is part of a healthy financial plan because it makes your hard-earned money go further(t/f)
true
Using cash gives you more bargaining power than using credit.(t/f)
true
The ability to walk away from a purchase when negotiating
walk-away power
The good guy, bad guy technique is a negotiating tool that you should be aware of.(t/f)
true
Which of the following is true about the ʺIf Iʺ take-away technique?
This technique involves negotiating the lowest price possible, then throwing something else into the deal.
Which of the following describes why using cash is a great bargaining tool?
all of the above
Getting the best deal on a purchase involves doing all of the following except
Being first in line for a new product
The difference between the wholesale price and retail price
markup
The exchange of goods or services without the use of money
barber
Which of the following is typically not a good place to find a deal?
mall
Learning to be quiet is actually a powerful tool in negotiation(t/f)
true
Which of the following is not recommended when selling something you own?
Find an uninformed buyer and charge the highest price possible.
Having to do with a person’s honesty and moral attributes
intergrity
Which of the following statements is false?
- Negotiation involves a conversation of back-and-forth, give-and-take
- A great deal often just happens by accident.
- If negotiation is done correctly, it will end up being a win -win deal.
- Just asking for a great deal doesn’t always mean that you’ll get one.
a great deal often just happens by accident
Being married (or emotionally attached) to a purchase will cause you to lose bargaining power.(t/f)
true
Type of yard sale with more items, usually the entire contents of a household
estate sale
Store return policies must balance customer service and profits. As a consumer, to ensure the best possible store return process, you should:
All of the above
Retail store where people sell items and the owner of the shop gets a percentage of the sale
consignment shop
A public sale in which property or items of merchandise are sold to the highest bidder
auction
If you’re trying to buy something, it’s not your job to come up with a good price. Make the seller work for your business.(t/f)
true
Which of the following is not recommended if you are trying to make your money go further?
buying only name brand products
