Spending Answers

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1
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This chart shows the actual pricing history for three items.

Question illustration
A
game system
B
smartphone
C
DVD
D
It's most beneficial to buy all now.
2
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What is advertising used for? Check all that apply.

A
influencing consumer tastes
B
tracking product popularity
C
increasing product awareness
D
promoting company branding
E
gathering data about potential consumers
3

Which details apply to a financing contract? Check all that apply.

A
requires a credit check
B
are always less expensive than using a credit card
C
includes interest rate information
D
requires a signature for rent-to-own agreements
E
can be broken at any time
4

Why do prices increase when demand for a product is high?

A
Companies know they can make more money by selling fewer products at higher prices.
B
Companies know that people will be willing to spend more to get an in-demand product.
C
Companies take advantage of the demand to make people spend more money on excess products.
D
Companies know they can stop production and still make money on sales.
5

Which questions should someone ask when deciding whether to lease or buy a car? Check all that apply.

A
Will I use it more than the allowed lease mileage?
B
Will my family like the car?
C
How long do I want the car?
D
How much do I want to spend?
E
How much do I like the car’s options?
6

When companies spend millions of dollars developing logos and slogans, or use celebrity endorsements to encourage consumers to buy particular products, this is called

A
false advertising.
B
undue influence.
C
product branding.
D
quality assurance.
7

The point at which it is no longer advantageous to buy in bulk is known as marginal

A
cost.
B
tipping.
C
benefit.
D
error.
8

Which option below is not a potential risk of purchasing a used car?

A
used cars can require repairs sooner
B
shorter lifespans of the engine and transmission
C
used cars can have lower initial cost
D
unexpected issues may arise
10

Read the scenario.Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. He is looking to purchase both a car and a place to live, and he is very interested in building up equity and credit.

A
buying both a car and a home
B
leasing both a car and home
C
buying a car and leasing a home
D
leasing a car and buying a home

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