U.E.T Taxila

COURSE TITLE : FREE 101

TRUE/FALSE QUESTIONS 1 TO 37

Chapter 6

1)The only way that you can have long-term financial security is to not save all of your current income.

2. Abigail checked out brands and prices of blue jeans at several stores. She was impulse shopping.

3. Abigail checked out brands and prices of blue jeans at several stores. She was comparison shopping.

4. Cam has an overwhelming desire to buy things whenever he goes shopping. One could say that he is a compulsive shopper

5. One of the best ways to compare packaged food products is to use rebate pricing.
6. Prices at the local Quick Market (convenience store) will probably be lower than the regional Big Box Retailer (grocery store).

7. Thomas bought a toaster that would not toast bread and returned it. The manufacturer accepted the return because it was defective and had a full warranty.

8. Thomas bought a vehicle from a used-car dealer. He returned it to the dealer because the transmission fell out 150 miles after he purchased it. The dealer refused to accept the return because the vehicle was sold 'as is.' This is an example of a limited warranty.

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9. A service contract is frequently called an extended warranty even though service contracts are not warranties

10. Service contracts on vehicles usually are wise financial decisions.

11. An example of a "preshopping activity" is negotiating the price of a product.
12. The phases of buying are: problem identification, pre-shopping activities, evaluating alternatives, selection and purchase, post-purchase activities.

13. A clear statement of a problem is: "I need to have a car."

14. A convenience option that consumers may look for in a vehicle is special trim.

15. An aesthetic feature of a vehicle is air conditioning.
16. A vehicle that looks rusty on the outside will have major operational problems.
17. A vehicle that looks rusty on the outside may hide a well-maintained engine.

18. A lease for a car or SUV is typically for three to five years.
19. An advantage of a lease over a purchase is that the buyer can usually obtain a
20. One of the first steps in a car purchase negotiation should be a discussion of the trade-in vehicle.

21. A trade-in vehicle should NOT be mentioned until the cost of the new car has been settled.
22. If you are somewhat interested in a specific vehicle, you should provide a small deposit so the car seller will hold the vehicle for you.

23. Lemon laws have been enacted in 48 of the 50 states for new vehicle purchases.

24. The largest fixed expense associated with a new automobile is depreciation.
25. Studies of consumer problems consistently rank auto repairs as one of the best consumer services with few consumer complaints.

26. People should be prepared for problems with purchases.
27. If you have a problem with a product and you really want to get the attention of someone in customerservice, you should raise your voice during your conversation.

28. If you have a problem with a product, the first place you should express your dissatisfaction to is the corporate headquarters.

29. Joe bought some cheese at his local grocery store. After he brought it home, he noticed it was moldy even though the expiration date was still three weeks away. He should call the toll- free hotline number printed on the package to tell the company of the problem he encountered.
30. The settlement of a difference by a mediator is legally binding.
31. The settlement of a difference by an arbitrator is legally binding.
32. Tracy went to a local restaurant and became ill from the meal she ate. She can contact her city or county health department to handle problems with the restaurant.

33. Small claims court is used to take legal action by a few individuals on behalf of all who have suffered the same alleged injustice.

34. The best place to find a qualified lawyer who will meet your specific needs is a phone book.

35. One of the best places to find a qualified lawyer who will meet your specific needs is referrals from friends.

36. A good time to use a lawyer is when you appear in small claims court.

37. The best time to ask a lawyer about his fees is after he wins a case for you.

38. When Jane researched the brands and prices of her refrigerator, she was

39.While Paul was shopping for a new chainsaw, he found a great deal on new drill and bought it. This is an example of

40. Jacob drives by a Big Box home improvement center on his way home from work. He usually stops and buys something because it makes him feel good. Jacob is

41.Which of the following is NOT a strategy for wise buying?

42. These products are highly advertised and available at many stores

43.These products are sold by one chain of stores and are low-cost alternatives to famous-name products.

44. A standard measurement used to compare packages of different sizes is

45. This type of promotion provides an immediate savings for consumers.

46.This shopping device is used primarily on perishable products.

47.The partial refund of the price of a product is called

48. This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired.

49. Most products come with some guarantee of quality. Which of the following is usually in written form, created by the seller or manufacturer and has two forms?

50. Most products come with some guarantee of quality. This type of warranty states that a defective product can be fixed or replaced during a reasonable amount of time.

51. Most products come with some guarantee of quality. This type of warranty covers only certain aspects of the product, such as parts.

52. Most products come with some guarantee of quality. This type of warranty covers the product's intended use or other basic understandings that are not in writing.

53. Steve bought a laptop that was defective. This laptop will be fixed or replaced by the manufacturer as long as he returns it in a reasonable amount of time. What type of warranty does he have on his laptop?

54. Frank bought some mini-blinds. Although he did not receive a written warranty, the blinds should be expected to open and close properly. What kind of warranty does Frank have?

55. Karen bought a mixer. She received a warranty that covers only certain aspects of the product. If the product fails, she may be required to pay part of the costs for shipping or repairs. Which of the following warranties does she have?

56. Mike bought a new car. His new car warranty probably included all except

57. A service contract

58. The text identifies several phases in the buying process. The correct order of the phases is

59. Problem identification is part of the                                   phase of the decision-making process.

60. Information gathering is part of the                                  phase of the decision-making process.

61. Comparison of product features is part of the                                      phase of the decision-making process.

62. Price analysis is part of the                                phase of the decision-making process.

63. Negotiation activities are part of the                                   phase of the decision-making process.

64. Choosing the payment method is part of the                                     phase of the decision-making process.

65. Properly maintaining and operating the product is part of the                                              phase of the decision- making process.

66. Resolving purchase concerns is part of the                                      phase of the decision-making process.

67. Which of the following is the best way to state a problem?

68. Which of the following sources would be the LEAST helpful when purchasing a vehicle?

69. All of the following are appropriate questions you could ask before making a major purchase except

70. Comparison shopping will be beneficial for buying all of the following except

71. Comparison shopping will be beneficial for buying

72. Buying a vehicle can be a challenging process. When researching a vehicle, a consumer may want to consider all of the following except

73. The average used car costs about                                          less than the average new car.

74. When purchasing a used vehicle, it is a good idea to

75. Which of the following is an advantage of a car lease?

 76. Which of the following is a disadvantage of a car lease?

 77. The amount printed on a label that is posted on a vehicle is called

78. The dealer's cost is also known as the

79. A no-haggling dealer will use a(n)                                             

80. The price of a leased vehicle is known as the

81. The expected value of a vehicle at the end of a lease is called the

82. Izzy is thinking about leasing a sports car. She will make monthly payments based on a money factor and the                                                               

83. Helga plans to purchase a pick-up truck. She should begin her price negotiation at the

84. A vehicle lease has several costs. Which of the following is the price of the vehicle?

85. A vehicle lease has several costs. Which of the following is the interest rate used to calculate the monthly cost?

86. A vehicle lease has several costs. Which of the following is the periodic cost?

87. A vehicle lease has several costs. Which of the following is the expected value at the end of the lease?

88.Which of the following is a cost associated with a vehicle lease?

89.George has never bought a car before. Which of the following techniques should he use to get the best deal?

90. A potential problem with having a long car loan is

91. Which of the following is correct about the lemon law?

92. A variable operating cost for a vehicle is

93. All of the following are fixed operating costs for a vehicle except

94. A fixed operating cost for a vehicle is

95. All of the following are variable operating costs for a vehicle except

96. The largest fixed expense associated with a new automobile is

97. Which of the following costs will directly increase with the number of miles driven?

98. Craig wants to get his old car repaired, but he doesn't want to spend very much money. He probably will NOT want to go to a

99. Most customer complaints result from the following except

100. Paul bought some bad gasoline that damaged the gas tank of his vehicle.

101. Think about consumer complaints. Which of the following is correct?

102. A process used to settle grievances using a nonbinding process is called a(n)

103. Tamra went to a restaurant and had an unpleasant experience that sent her to the hospital. The problems at the restaurant should be handled by

104. Which of the following is not a legal option for upper-income consumers?

105. Sally has a major problem with a product and thinks that many others have had the same problem. Which of the following is the best way to resolve the problem?

106.Steven needs to write a will. His best resource is (a)

107. Adolph has a low income and needs legal assistance. He should make use of (a)

108. If you want to pay a set fee to receive unlimited or reduced-fee assistance, you should use (a)

109. If you have a problem whose remedy will be $1500 - $3000, the appropriate tool to use would be (a)

110. The unit price of a 2 pound (32 ounces) box of brown sugar that costs $3.20 is