Consumer- Chapter 7

Question 1

getting the best deal on a purchase involves all of the following except what?

Answer 1

being first in line

Question 2

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

Answer 2

the mall

Question 3

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

Answer 3

all of the above

Question 4

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

Answer 4

walk away

Question 5

the lucky 7 rules can get you incredible deals on things you buy every day but only work if you ______

Answer 5

use them

Question 6

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

Answer 6

credit repair and debt consolidation

Question 7

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

Answer 7

buying only name brand products

Question 8

when buying things at an auction it is important to ____

Answer 8

all of the above

Question 9

true or false: using cash gives you more bargaining power than using credit

Answer 9

true

Question 10

true or false: being married or emotionally attached to purchase will cause you to lose bargaining power

Answer 10

true

Question 11

true or false: most of the items at a pawn shop are stolen

Answer 11

false

Question 12

true or false: learinign to be quiet is actually a powerful tool in negotiations

Answer 12

true

Question 13

true or false: shopping for bargains is part of a healthy financial plan because it makes your hard-earned money go further

Answer 13

true

Question 14

true or false: in a certain circumstance, it is okay to stretch the truth to get a bargain

Answer 14

false

Question 15

true or false: excluding the US most countries use negotiating as a way of life

Answer 15

true

Question 16

true or false: making informed choices as a consumer will yield savings

Answer 16

true

Question 17

true or false: If you are not trying to buy something, it is not your job to come up with a good price. Make the seller work for your business

Answer 17

true

Question 18

true or false: the good guy bad guy technique is a negotiating tool that you should be aware of

Answer 18

true

Question 19

process by which the holder of a mortgage sells the property of a homeowner who does not make interest or payments on time… (in book)

Answer 19

foreclosure

Question 20

the difference between the wholesale price and the retail price

Answer 20

markup

Question 21

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

Answer 21

integrity

Question 22

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

Answer 22

estate sale

Question 23

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

Answer 23

consignment shop

Question 24

the process of quantifying the cost and benefits of a decision

Answer 24

cost-benefit analysis

Question 25

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

Answer 25

auction

Question 26

to bargain for a lower price

Answer 26

negotiate

Question 27

the exchange of goods or services without the use of money

Answer 27

barter

Question 28

the ability to walk away from a purchase while negotiating

Answer 28

walk-away power

Question 29

Summarize the benefits of being a wise consumer

Answer 29

There are several benefits of being a wise consumer. A variety of skills needs to be developed such as researching items before purchasing them so you find the best deals. People who are wise consumers also enjoy improved health and knowledge because they make informed decisions about what to buy that will promote their health. Wise consumers do not spend more than they need to and they are always searching for the best deals that will benefit them and save them money.

Question 30

Explain how walk-away power can be used as a negotiating tool

Answer 30

Walk-away power can be used as a negotiating tool because it goes to show that you are not emotionally attached to the item you are trying to buy. Walking away shows that you were not that interested in that item and will make the seller more adamant about selling the product to you.

Question 31

What role does research play in getting good deals on purchases?

Answer 31

Research plays a big role in getting good deals on purchases. Researching and comparing items from different places will help you to find the best deals on the items that you are wanting to buy. That way you will not be paying more than you need to.

Question 32

Why is honesty an important component of bargaining?

Answer 32

Honesty is an important part of bargaining otherwise you are just lying. Telling the truth about an item will help you to get better deals. For example, if you are looking to buy a used car that you didn’t know had been in an accident and there is a dent on the back bumper. The price of the car should be lower than other cars of that type because it is not in as good of condition as other used cars like it. Knowing the truth will help you to find better deals and negotiate.

Question 33

Describe the cost-benefit of buying slightly outdated products

Answer 33

Usually, slightly outdated products are cheaper than newer products because not as many people look for outdated products. They want the new things that are up-to-date and fancy. By buying outdated products, you can save money and use that money to buy something new in the future.