chapter 7

Question 1

In certain circumstances, it is okay to stretch the truth to get a bargain(t/f)

Answer 1

false

Question 2

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

Answer 2

credit repair and debt consolidation

Question 3

Making informed choices as a consumer will usually yield savings(t/f)

Answer 3

true

Question 4

Most of the items at a pawnshop are stolen(t/f)

Answer 4

false

Question 5

Joe tries to bargain at an electronics store but is unable to negotiate the price down. What should be his next step?

Answer 5

walk away

Question 6

When buying things at an auction, it is important that you

Answer 6

all of the above

Question 7

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

Answer 7

forclosure

Question 8

The process of quantifying costs and benefits of a decision

Answer 8

cost-benefit analysis

Question 9

“The Lucky Sevenʺ rules can get you incredible deals on the stuff you buy every day, but they only work if you:

Answer 9

use them

Question 10

Which of the following statements is false about bargening

Answer 10

Your choices as a consumer have no impact on the larger social environment.

Question 11

To bargain for a lower price

Answer 11

neogatiate

Question 12

Excluding the United States, most countries use negotiating as a way of life(t/f)

Answer 12

true

Question 13

Shopping for bargains is part of a healthy financial plan because it makes your hard-earned money go further(t/f)

Answer 13

true

Question 14

Using cash gives you more bargaining power than using credit.(t/f)

Answer 14

true

Question 15

The ability to walk away from a purchase when negotiating

Answer 15

walk-away power

Question 16

The good guy, bad guy technique is a negotiating tool that you should be aware of.(t/f)

Answer 16

true

Question 17

Which of the following is true about the ʺIf Iʺ take-away technique?

Answer 17

This technique involves negotiating the lowest price possible, then throwing something else into the deal.

Question 18

Which of the following describes why using cash is a great bargaining tool?

Answer 18

all of the above

Question 19

Getting the best deal on a purchase involves doing all of the following except

Answer 19

Being first in line for a new product

Question 20

The difference between the wholesale price and retail price

Answer 20

markup

Question 21

The exchange of goods or services without the use of money

Answer 21

barber

Question 22

Which of the following is typically not a good place to find a deal?

Answer 22

mall

Question 23

Learning to be quiet is actually a powerful tool in negotiation(t/f)

Answer 23

true

Question 24

Which of the following is not recommended when selling something you own?

Answer 24

Find an uninformed buyer and charge the highest price possible.

Question 25

Having to do with a person’s honesty and moral attributes

Answer 25

intergrity

Question 26

Which of the following statements is false?

1. Negotiation involves a conversation of back-and-forth, give-and-take
2. A great deal often just happens by accident.
3. If negotiation is done correctly, it will end up being a win -win deal.
4. Just asking for a great deal doesn’t always mean that you’ll get one.

Answer 26

a great deal often just happens by accident

Question 27

Being married (or emotionally attached) to a purchase will cause you to lose bargaining power.(t/f)

Answer 27

true

Question 28

Type of yard sale with more items, usually the entire contents of a household

Answer 28

estate sale

Question 29

Store return policies must balance customer service and profits. As a consumer, to ensure the best possible store return process, you should:

Answer 29

All of the above

Question 30

Retail store where people sell items and the owner of the shop gets a percentage of the sale

Answer 30

consignment shop

Question 31

A public sale in which property or items of merchandise are sold to the highest bidder

Answer 31

auction

Question 32

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)

Answer 32

true

Question 33

Which of the following is not recommended if you are trying to make your money go further?

Answer 33

buying only name brand products