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Chapters 22-24

True/False
Indicate whether the sentence or statement is true or false.
 

 1. 

Wise shoppers should buy only brand name products since they are clearly of the highest quality.
 

 2. 

Most of the time department stores have better prices than most discount stores.
 

 3. 

Loss leaders are items that are priced lower than the retailer’s cost.  The retailer will lose money on these sales, but they make up for this loss by luring customers to buy other items.
 

 4. 

Consumers have no special legal rights.
 

 5. 

To keep businesses competitive so consumers have a wide variety of goods and services from which to choose, the federal government has the authority to break up monopolies.
 

 6. 

Different stores might charge different prices for the same item.
 

 7. 

The Better Business Bureau rates and recommends local businesses with good reputations, similar to “Angie’s list” but free.
 

 8. 

According to Truth in Lending, loan companies must clearly list all charges such as interest rates and late fees.
 

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

 9. 

This is a person who selects, purchases, uses, and disposes of goods and services.
a.
wholesaler
c.
impulse shopper
b.
consumer
d.
loss leader
 

 10. 

This is the best time to save money on buying a the current model computer or car.
a.
the first week the current model becomes available
b.
at the beginning of the school year
c.
just before the next model is about to come out
d.
before holidays
 

 11. 

Which of these gives you a special buy on a new product?
a.
clearance sale
c.
warranty
b.
unit price
d.
promotional sale
 

 12. 

Which of these can cause you to buy things you don’t need, thus ruining your savings plan.
a.
impulse buying
c.
rational advertising
b.
comparison shopping
d.
shopping lists
 

 13. 

This is not a consumer right.
a.
the right to a discount
c.
the right to safety
b.
the right to choose
d.
the right to be heard
 

 14. 

Which consumer right being fulfilled by listing minerals and vitamins on the label of a food product.
a.
the right to be informed
c.
the right to be heard
b.
the right to choose
d.
the right to safety
 

 15. 

A store that claims it’s out of an advertised item and tries to get you to buy a more expensive one is doing this.
a.
bait and switch
c.
sabatoge
b.
loss leader
d.
boycotting
 

 16. 

A nutrition label can tell you this.
a.
How much a product costs.
c.
How much fat a product contains.
b.
How to wash a product.
d.
How to use a product safely.
 

 17. 

You can receive consumer publications from government agencies by contacting the Consumer Information Center in Pueblo, Colorado.  Their current website is:
a.
BetterBusinessBureau.gov
c.
ConsumersUnion.gov
b.
Publications.USA.gov
d.
NationalConsumersLeague.gov
 

 18. 

To prevent people from practicing occupations they’re not qualified to do, states issue these legal permits to conduct business.
a.
licenses
c.
grade labels
b.
legal monopolies
d.
consumer reports
 

 19. 

DSW shoes and Alpine Ski Shop are examples of these specialty stores.
a.
department stores
c.
superstores and hypermarkets
b.
discount stores
d.
limited-line retailers
 

 20. 

What is it called when the National Highway Traffic Safety Administration orders automakers to take back and repair or replace cars with defective parts.
a.
recall
c.
rebate
b.
refund
d.
required return
 



 
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