Unit 1

Question 1

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

Answer 1

Integrity

Question 2

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

Answer 2

Consignment shop

Question 3

The ability to walk away from a purchase when negotiating

Answer 3

Walk-away power

Question 4

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 4

Foreclosure

Question 5

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

Answer 5

Auction

Question 6

The process of quantifying cost and benefits of a decision

Answer 6

Cost-benefit analysis

Question 7

The difference between the wholesale price and retail price

Answer 7

Markup

Question 8

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

Answer 8

Estate Sale

Question 9

To bargain for a lower price

Answer 9

Negotiate

Question 10

T or F: using cash gives you more bargaining power than using credit

Answer 10

True

Question 11

T or F: being married (or emotionally attached) to a purchase will cause you to lose bargaining power

Answer 11

True

Question 12

Getting the best deal on a purchase involves doing all of the following except:
A) having Patience
B) being first in line for a new product
C) negotiating
D)shopping around to find the best deal

Answer 12

B) being first in line for a new product

Question 13

Which of the following is typically not a good place to find a deal?
A) consignment shops 
B) individuals 
C) mall 
D) online auctions

Answer 13

C) mall

Question 14

Which of the following describes why using cash is a great bargaining tool?
A) cash is visual 
B) cash has immediacy 
C) cash is emotional 
D) all of the above

Answer 14

D) all of the above

Question 15

Summarize the benefits of being a wise consumer

Answer 15

In addition to economic saving , wise consumers enjoy improved health and have a positive impact on the larger social and even global environment

Question 16

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

Answer 16

You must not get emotionally attached to the purchase. It’s only if you’re prepared to walk away form the purchase that you will have the ability to negotiate

Question 17

What role does research play in getting good deals on purchases

Answer 17

Recognize that researching a products prior to purchase makes you a informed consumer. Good negotiators are always armed with information about the product

Question 18

Why is honest an important component of bargaining

Answer 18

If you lie and end up being wrong that person won’t trust you making it hard to make a deal.

Question 19

Describe the cost benefit of buying lowlights outdated products

Answer 19

There is a very little difference in quality and performance of slightly outdated products . However, the price difference may be significant