Economics Today and Tomorrow

Chapter 5: Buying the Necessities

Buying the Necessitites

1
Comparison shopping for food involves all of the following EXCEPT __________
A)comparing the price of milk to the price of bread.
B)comparing the prices of the same items at different stores.
C)comparing the prices of different sizes of the same item.
D)comparing the prices of different brands of the same item.
2
Club warehouse stores are best for consumers who __________
A)don't mind paying higher prices for the best selection.
B)want a large selection of fresh, canned, and frozen foods.
C)don't mind paying higher prices for convenience.
D)can buy items in large quantities.
3
In addition to price, clothing value depends on all of the following factors EXCEPT __________
A)cost of care.
B)function.
C)durability.
D)style.
4
Which of the following statements about clothing sales is NOT TRUE?
A)You should consider the trade-offs involved in paying cash or using credit to buy clothing on sale.
B)Buying clothing on sale just because it is on sale is not the wisest use of your clothing budget.
C)You should make a list of the clothing you require before you go shopping.
D)The work-time cost of clothing has steadily risen since the beginning of the century; thus, store owners cannot afford to have many sales on clothing.
5
The rules used to determine how much a consumer should spend on a house include each of the following EXCEPT __________
A)Purchase price ÷ annual income = 2.0 or less.
B)Purchase price ÷ annual income = 2.0 or more.
C)Loan amount ÷ appraised value of the house = 95 percent or less.
D)Mortage payment ÷ monthly take-home income = 33.3 percent.
6
Tenant responsibilities include each of the following EXCEPT __________
A)making repairs at tenant's expense.
B)taking reasonable care of the property.
C)paying the rent on time.
D)reading the lease carefully before signing.
7
Which of the following statements accurately describes a trade-off made when purchasing an automobile?
A)A smaller engine usually is more powerful, but it uses more gas.
B)A new car looks better than a used car, but the repairs are more expensive because the prices of parts keep rising.
C)A new car looks better than an older, used car.
D)A used car costs less than a new one, but there may be more repairs associated with owning an older model.
8
Which of the following is NOT a cost associated with buying and owning an automobile?
A)maintenance and insurance
B)the interest on the loan if the car is financed
C)the time spent driving
D)the time spent shopping for and purchasing a car
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