1 A) income spent on entertainment and luxury items. B) income spent on necessary goods and services. C) an individual's annual money income before taxes. D) the money income a person has left after all taxes have been paid. 2 A) having lunch in a restaurant. B) paying the electric bill. C) going to a movie. D) buying a CD-player. 3 A) What do my friends want me to buy? B) How much time, effort, and money should I spend to maintain the item? C) What quality will I be satisfied with? D) Do I really need this item? 4 A) The less valuable your time is, the less time you should spend gathering information. B) Time is valuable-wasting time to gather information is the same as wasting money. C) The more time you spend, the better your decision will be. D) Time is valuable-obtain only as much information as is worthwhile. 5 A) sell consumers a higher-priced product than that which is advertised. B) persuade consumers to buy the advertised product because it is superior. C) give important information about competing products. D) give important information about the advertised product. 6 A) spending too much time on the decision making process. B) using the bait and switch technique. C) comparison shopping. D) using advertising wisely. 7 A) be protected against goods that are dangerous to life and health. B) obtain from manufacturers adequate payment in money or goods for financial or physical damages caused by their products. C) have a basis for reasoned choices. D) assume that advertising is truthful and accurate. 8 A) Federal Trade Commission. B) Food and Drug Administration. C) U.S. Department of Agriculture. D) U.S. Postal Service. 9 A) exhibiting ethical behavior. B) contacting a consumer agency before contacting the manufacturer or retailer. C) keeping warranties in a safe place, but not necessarily reading them. D) trying to fix a refrigerator yourself before reporting the problem.
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