Name:     ID: 
 
Email: 

Chapter 3-Review Guide

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 

Determine which of the following bags of chips of comparable quality has the lowest per-unit cost and, thus, is the best buy.
a.
Brand A, 8 oz bag for $3.60
b.
Brand B, 10 oz bag for $3.90
c.
Brand C, 16 oz bag for $6.50
d.
Brand D, 1 oz bag for $.59
 

 2. 

Elizabeth has found a super-zoom camera online at a website. She has verified that the business is legitimate through the Better Business Bureau.  She is going to purchase the camera. What steps should she take to ensure that she makes a safe online purchase?
a.
She should use an HTTP site and delete order confirmations.
c.
She should use a computer connected to free WIFI and no security software.
b.
She should use an HTTPS site and print and keep order confirmations.
d.
She should use a computer without security software and ignore privacy policies.
 

 3. 

Molly  borrowed $100 dollars from her friend,  Luci and promised to pay it back one year later. The money that Luci will receive back in one year will not have the same value as the money that she loaned Molly.  What financial concept says that a “dollar you receive in the future will be worth less than a dollar you receive today?
a.
brand strategy
c.
cost-plus pricing
b.
real-cost inflation
d.
time value of money
 

 4. 

What federal committee  oversees investment firms to ensure that proper financial procedures are followed?
a.
Harvard Business Review
c.
Securities and Exchange Commission
b.
Survey of Current Business
d.
Charted Financial Consultants
 

 5. 

Roger shops online for hunting gear at a  variety of websites. These websites track the products that he clicks on and the pages visited in the site. This tracking enables the websites to recognize him each time he visits. What files store the information about Roger?
a.
infomercial
c.
advertising
b.
cookies
d.
pop-up ads
 

 6. 

What agency could an individual use to investigate whether or not a business is a legitimate business and if there have been complaints filed against the business?
a.
The Better Business Bureau.
c.
The Consumers Union.
b.
The Major Appliance Consumer Action Panel.
d.
The Consumer Product Safety Commission.
 

 7. 

What is the list of commonly bought goods and services by consumers that is tracked by the U.S. Government and used to measure inflation?
a.
Consumers Union
c.
Federal Trade Commission
b.
Consumer Price Index
d.
Federal Communications Commission
 

 8. 

Amy had an exhausting and stressful day at work. She needed to go grocery shopping after work, but left her list at home. Amy usually makes very healthy purchases. Her husband was surprised with the purchases that she brought home that evening, a quart of  rocky road ice cream, a deli pizza, and a 1-pound box of chocolates. What type of buying did Amy experience on her shopping trip?
a.
comparison shopping
c.
branding strategy
b.
emotional buying
d.
rational buying
 

 9. 

When inflation is rising too fast it hurts consumers. The Federal Reserve System, which is the central bank, has tools to stabilize the economy.  When the Federal Reserve decides to increase interest rates for consumers and business to slow down their spending. What type of policy is the Federal Reserve applying to the economy?
a.
monetary
c.
rational
b.
emotional
d.
fiscal
 

 10. 

Trace and Miranda save as much money as possible, and only spend money when necessary. They wait to purchase an item until it is needed, and then buy as little as possible at the lowest price they can find. What buying strategy are Trace and Miranda implementing?
a.
economizing
c.
emotional buying
b.
optimizing
d.
impulse buying
 

 11. 

What federal agency could help a consumer if they are a victim of identity theft?
a.
The Securities and Exchange Commission.
c.
The Consumers Product Safety Commission.
b.
The Federal Communications Commission.
d.
The Federal Trade Commission.
 

 12. 

Which of the strategies would be most likely to help a person avoid impulse buying?
a.
He/she should make a conscious effort to spend less.
c.
He/she should make purchases while in an emotional state.
b.
He/she should set aside a fixed amount to spend.
d.
He/she should make a list for shopping.
 

 13. 

Rita likes to record the daily episodes of “Wheel of Fortune” because she attends a fitness class when the shows are aired. What provision of the Consumers Technology Bill Rights is she protected by when recording these episodes?
a.
Translation
c.
Platform of choice
b.
Space-shifting
d.
Time-shifting
 

 14. 

As part of Deanna’s New Year’s resolution she purchased a knock-off national at-home-gym to help with her “get healthy” resolution. She paid $400 for the gym, and has found that the gym is not very sturdy. Many of the attachments that came with the gym are weak and have broken after only a few uses. She is wishing that she would have spent the extra $150 for the “name-brand” gym equipment. What is Deanna experiencing?
a.
buyer’s remorse
c.
redress
b.
emotional buying
d.
rational buying
 

 15. 

Angela wants to purchase a new camera for her family vacation to Yellowstone National Park. She has checked prices at several local retailers and read reviews for the model she wants to buy in Consumer Reports and at CNET. com. What buying strategy is she using for this purchase?
a.
impulse buying
c.
branding strategy
b.
comparison shopping
d.
emotional buying
 

 16. 

Olivia’s grandmother takes medication for her high-blood pressure. She was unable to afford her medication, because of the price. Olivia went to the doctor with her grandmother and requested a cheaper generic version of her grandmother’s medication. This allowed Olivia’s grandmother to save thousands of dollars yearly. What law made the purchase of generic medications possible?
a.
Hazardous Substances Act
c.
Care Labeling Rule
b.
Nutrition Labeling and Education Act
d.
Kefauver-Harris Drug Amendment
 

 17. 

Kristen’s grandfather has been hospitalized. She wants to ensure that he receives the best treatment possible for the term of his hospital stay and that he receives accurate, easily understood information so he can make informed health care decisions. What provision in the Patients’ Bill of Rights ensures this right?
a.
The Confidentiality provision.
c.
The Choice Providers provision.
b.
The Respect and Nondiscrimination provision.
d.
The Informed Disclosure provision.
 

 18. 

Abby wants to make sure that her medical information is kept safe at her doctor’s office. What act protects her health and billing information, including information stored on a computer network by limiting who can have access to it?
a.
Health Insurance Portability and Accountability Act
c.
Hazardous Substance Act
b.
Food, Drug and Cosmetic Act
d.
Family Educational Rights and Privacy Act
 

 19. 

Shelly purchased a dock for her iPod from at a local retail establishment. The dock has an alarm function, a clock, and a battery back-up incase of power loss. The dock won’t charge her iPod, and the light on the clock won’t dim. She tried unplugging the dock, putting in new batteries and calling technical support, but nothing she does has made those features work on the dock. What is the first step that Shelly should take to get a resolution for the unusable dock?
a.
She should accept that the dock will not work.
c.
She should take the dock  back to the store.
b.
She should throw the dock in the trash.
d.
She should put the dock in the closet and forget about it.
 

 20. 

Calculate the unit price for a box of cookies, 48 cookies at $3.49. How much per cookie?
a.
.05 cents per cookie
c.
.07 cents per cookie
b.
.06 cents per cookie
d.
.08 cents per cookie
 

 21. 

Rodney received a letter in the mail informing him that he has won a free Hawaii vacation, but needs to send a $500 shipping fee to get the tickets for the trip. What does this letter represent?
a.
direct advertising
c.
customer branding
b.
fraud
d.
branding strategy
 

 22. 

Emilio has discovered that he is a victim of identity theft. What federal agency could help him with this issue?
a.
The Securities and Exchange Commission.
c.
The Consumers Product Safety Commission.
b.
The Federal Trade Commission
d.
The Federal Communications Commission.
 



 
         Start Over