chapter 1 review. an effective consumer might do any of the following except: a.order a product from...
TRANSCRIPT
Chapter 1 Review
An effective consumer might do any of the following EXCEPT:
a. Order a product from a tv shopping channelb. Use a credit card frequentlyc. Buy a product on impulsed. Hire an investment professional
Answer
C. Buy a product on impulse
Which agency enforces laws against dishonest advertising?
a. FCICb. CPSCc. FCCd. FTC
Answer:
D. FTC
If you cannot afford a lawyer but want to bring a lawsuit, you should contact
the local:a. Police departmentb. Legal aid officec. Bar associationd. Circuit court
Answer:
B. Legal aid office
__________, worker and citizen are the three major economic roles that
most people play. a. Spenderb. Eaterc. Userd. Consumer
Answer:
D. Consumer
A neutral person who hears both sides of a dispute and makes a decision is
called a:
a. Arbitratorb.Counselorc. Lawyerd.Mediator
Answer:
A. Arbitrator
An economic disadvantage of technology is its influence on:
a. Providing optionsb. Impulse buyingc. Consumer educationd. At-home shopping
Answer:
B. Impulse buying
Standards for meat, poultry and canned fruits/veggies are set by the:
A. FDAB. USDAC. FTCD. CPSC
Answer:
B. USDA (US dept of agriculture)
• T/F: An ad for a $99 airfare that does not clearly disclose extra
charges and hidden restrictions is deceptive.
Answer:
• True
T/F: A mediator is another name for an arbitrator.
Answer:
• False
T/F: Going to the customer service desk at the store is a way to
complain about an item purchased at the store.
Answer:
• True
Child care and auto maintenance are examples of ____________ used by
consumers. a. Goodsb. Luxuriesc. Servicesd. Products
Answer:
C. Services
A nine digit number that keeps track of your earnings.
a. ISBNb. SSNc. Drivers Licensed. Routing Number
Answer:
B. SSN (Social Security Number)
When is it okay to give confidential info over the phone?
a. When they call you and need the infob. When you call them at their regular #c. When it’s for health insuranced. When they call and tell you they are closing
your account
Answer:
B. When you call them at their regular #
The Children’s Online Privacy Protection Act affects web sites aimed
at children under the age of:
a. 11b. 12c. 13d. 15
Answer:
C. 13
The BBB provides ____________ reports on local businesses.
a. Consumerb. Fraudulentc. Financiald. Reliability
Answer:
D. Reliability
Who wrote Unsafe at Any Speed?
a. Ralph Naderb. Upton Sinclairc. Rachel Carsond. President JFK
Answer:
a. Ralph Nader
T/F: Pyramid schemes fail because it is impossible to continue recruiting enough
people.
Answer:
• True
Who identified four basic rights of consumers in a message to Congress?
a. President JFKb. Harvey Wileyc. President Gerald R. Fordd. Upton Sinclair
Answer:
A. President JFK
T/F: Deceptive advertising is
sometimes legal.
Answer:
• False
Those who sell directly to consumers are:
A. AdvertisersB. RetailersC. VolunteersD. Workers
Answer:
B. Retailers
What is the illegal use of an individual’s personal information?
a. Cyber stalkingb. Online profilingc. Fraudd. Identity theft
Answer:
D. Identity Theft
T/F: You are committing a federal crime if you merely forward the illegal chain letter.
Answer:
• True
T/F: Some earn-money-at-home advertisements are really for spend-money-at-
home opportunities.
Answer:
• True
What is used to predict a consumer’s future purchases?
a. Cookiesb. Online Profilingc. Cyber stalkingd. Privacy options
Answer:
B. Online Profiling
________ is advertising a product with no intention of selling it but rather to
sell a higher priced product. a. Caveat emptorb. Fraudc. Bait and switchd. Multilevel marketing plan
Answer:
C. Bait and Switch
T/F: Fraud is rare in today’s consumer world.
Answer:
• False
_______ is a means for distributors to legally sell products to consumers.
a. Pyramid schemeb. Multilevel marketing planc. Sweepstakes notification formd. Chain letter
Answer:
B. Multilevel marketing plan
T/F: Taking the recommended precautions will eliminate the chance of
identity theft.
Answer:
False
T/F: The consumer movement works for the economic power
of business and industry.
Answer:
• False
T/F: The actions of consumers have little or no effect on what
products are offered for sale in store.
Answer:
False