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