Overwhelming

1. 
   I need to have a car.
   
2. 
   I need transportation.
   
3. 
   I need a motorcycle.
   
4. 
   I need to have a minivan.
   
5. 
   I need to have an SUV.
   

1. 
   Personal contacts to learn about product performance.
   
2. 
   Media information with purchasing advice.
   
3. 
   Independent testing organizations like Consumers Union.
   
4. 
   Online sources with product information.
   
5. 
   Your cousin who has never purchased a car.
   

1. 
   Is it possible to delay the purchase or to do without the item?
   
2. 
   Should I pay for the item with cash or buy it on credit?
   
3. 
   Which brands should I consider?
   
4. 
   How do the price, quality, and service compare at different stores?
   
5. 
   All of these are questions that should be asked.
   

1. 
   A hot dog at the baseball park.
   
2. 
   Milk and bread that you buy weekly.
   
3. 
   A pet dog.
   
4. 
   Musical instrument accessories that you purchase online.
   
5. 
   An expensive television.
   

1. 
   Inexpensive items.
   
2. 
   One-time purchases of low-cost products.
   
3. 
   Products whose prices are the same at all retailers.
   
4. 
   Products whose quality is the same at all retailers.
   
5. 
   Items that can be researched easily with advertisements.
   

1. 
   Mechanical devices to improve performance.
   
2. 
   Convenience options such as air conditioning.
   
3. 
   Aesthetic features like metallic paint.
   
4. 
   All of these may be considered.
   
5. 
   None of the items listed are important when buying a vehicle.
   

1. 
   $0
   

74. 
    When purchasing a used vehicle, it is a good idea to
    
    1. 
       Take out a loan for the entire cost.
       
    2. 
       Accept the dealer at his word about the condition of the vehicle.
       
    3. 
       Have a trained and trusted mechanic of your choice check out the vehicle.
       
    4. 
       All of these are correct.
       
    5. 
       None of these is correct.
       
75. 
    Which of the following is an advantage of a car lease?
    
    1. 
       A large down payment is required.
       
    2. 
       At the end of the lease, you have no ownership interest in the vehicle.
       
    3. 
       The capitalized cost is usually higher than the list price.
       
    4. 
       Monthly lease payments are usually lower than monthly financing payments.
       
    5. 
       The total cost of a lease may be higher than a purchase.
       
76. 
    Which of the following is a disadvantage of a car lease?
    
    1. 
       A large down payment is required.
       
    2. 
       At the end of the lease, you have no ownership interest in the vehicle.
       
    3. 
       The capitalized cost is usually lower than the list price.
       
    4. 
       Monthly lease payments are usually lower than monthly financing payments.
       
    5. 
       You can usually obtain a more expensive vehicle than with an outright purchase.
       
77. 
    The amount printed on a label with the suggested retail price that is posted on a vehicle is called the
    
    1. 
       Invoice price.
       
    2. 
       Sticker price.
       
    3. 
       Set price.
       
    4. 
       Capitalized cost.
       
    5. 
       Residual value.
       
78. 
    The dealer's cost is also known as the
    
    1. 
       Invoice price.
       
    2. 
       Sticker price.
       
    3. 
       Set price.
       
    4. 
       Capitalized cost.
       
    5. 
       Residual value.
       
79. 
    A no-haggling dealer will use a(n)
    
    1. 
       Invoice price.
       
    2. 
       Sticker price.
       
    3. 
       Set price.
       
    4. 
       Capitalized cost.
       
    5. 
       Residual value.
       
80. 
    The price of a leased vehicle is known as the
    
    1. 
       Invoice price.
       
    2. 
       Sticker price.
       
    3. 
       Set price.
       
    4. 
       Capitalized cost.
       
    5. 
       Residual value.
       
81. 
    The expected value of a vehicle at the end of a lease is called the
    
    1. 
       Invoice price.
       
    2. 
       Sticker price.
       
    3. 
       Set price.
       
    4. 
       Capitalized cost.
       
    5. 
       Residual value.
       
82. 
    Izzy is thinking about leasing a sports car. She will make monthly payments based on a money factor and the
    
    1. 
       Invoice price.
       
    2. 
       Sticker price.
       
    3. 
       Set price.
       
    4. 
       Capitalized cost.
       
    5. 
       Residual value.
       
83. 
    Helga plans to purchase a pickup truck. She should begin her price negotiation at the
    
    1. 
       Invoice price.
       
    2. 
       Money factor.
       
    3. 
       Set price.
       
    4. 
       Capitalized cost.
       
    5. 
       Residual value.
       
84. 
    A vehicle lease has several costs. Which of the following is the price of the vehicle?
    
    1. 
       Capitalized cost.
       
    2. 
       Money factor.
       
    3. 
       Payment schedule.
       
    4. 
       Residual value.
       
    5. 
       All of these.
       
85. 
    A vehicle lease has several costs. Which of the following is the interest rate used to calculate the monthly cost?
    
    1. 
       Capitalized cost.
       
    2. 
       Money factor.
       
    3. 
       Payment schedule.
       
    4. 
       Residual value.
       
    5. 
       All of these.
       
86. 
    A vehicle lease has several costs. Which of the following is the amount paid monthly?
    
    1. 
       Capitalized cost
       
    2. 
       Money factor
       
    3. 
       Payment amount
       
    4. 
       Residual value
       
    5. 
       Trade-in value
       
87. 
    A vehicle lease has several costs. Which of the following is the expected value at the end of the lease?
    

1. 
   Capitalized cost
   
2. 
   Money factor
   
3. 
   Payment amount
   
4. 
   Residual value
   
5. 
   Trade-in value
   
1. 
   Which of the following is a cost associated with a vehicle lease?
   
   1. 
      Capitalized cost.
      
   2. 
      Money factor.
      
   3. 
      Payment amount.
      
   4. 
      Residual value.
      
   5. 
      All of these.
      
2. 
   George has never bought a car before. Which of the following techniques should he use to get the best deal?
   
   1. 
      Lowballing
      
   2. 
      Highballing
      
   3. 
      Leave a deposit to hold the vehicle
      
   4. 
      Research the actual dealer cost and begin negotiations from that point
      
   5. 
      Tell the dealer the highest monthly payment he can afford
      
3. 
   A potential problem with having a long car loan is
   
   1. 
      Low monthly payments.
      
   2. 
      Low-interest loan.
      
   3. 
      Negative equity.
      
   4. 
      Loan preapproval.
      
   5. 
      All of these are potential problems.
      
4. 
   Which of the following is correct about the lemon law?
   
   1. 
      It applies when a vehicle has been out of service for 60 days.
      
   2. 
      It was enacted in 45 of the 50 states.
      
   3. 
      It requires a refund for the vehicle after the owner has made repeated attempts to obtain financing.
      
   4. 
      It applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles.
      
   5. 
      It applies to both new and used vehicle purchases.
      
5. 
   A variable operating cost for a vehicle is
   
   1. 
      Depreciation.
      
   2. 
      Insurance.
      
   3. 
      Interest on an auto loan.
      
   4. 
      License and registration.
      
   5. 
      Maintenance and repairs.
      
6. 
   All of the following are fixed operating costs for a vehicle except
   
   1. 
      Depreciation.
      
   2. 
      Insurance.
      
   3. 
      Interest on an auto loan.
      
   4. 
      License and registration.
      
   5. 
      Maintenance and repairs.
      
7. 
   A fixed operating cost for a vehicle is
   
   1. 
      Depreciation.
      
   2. 
      Gasoline and oil.
      
   3. 
      Maintenance and repairs.
      
   4. 
      Parking.
      
   5. 
      Tires.
      
8. 
   All of the following are variable operating costs for a vehicle except
   
   1. 
      Depreciation.
      
   2. 
      Gasoline and oil.
      
   3. 
      Maintenance and repairs.
      
   4. 
      Parking.
      
   5. 
      Tires.
      
9. 
   The largest fixed expense associated with a new automobile is
   
   1. 
      Depreciation.
      
   2. 
      Insurance.
      
   3. 
      Interest on an auto loan.
      
   4. 
      License and registration.
      
   5. 
      Maintenance and repairs.
      
10. 
    Which of the following costs will increase directly with the number of miles driven?
    
    1. 
       Depreciation
       
    2. 
       Gasoline
       
    3. 
       Insurance
       
    4. 
       Interest on an auto loan
       
    5. 
       License and registration
       
11. 
    Craig wants to get his old car repaired, but he doesn't want to spend much money. He probably will NOT want to go to a
    
    1. 
       Car dealer.
       
    2. 
       Independent auto repair shop.
       
    3. 
       Mass merchandise retailer.
       
    4. 
       Service station.
       
    5. 
       Specialty shop.
       
12. 
    Most customer complaints result from the all of the following except
    
    1. 
       Deceptive pricing.
       
    2. 
       Defective products.
       
    3. 
       Long product lives.
       
    4. 
       Low-quality products.
       
    5. 
       Unexpected costs.
       
13. 
    Paul bought some bad gasoline that damaged the gas tank of his vehicle.
    
    1. 
       He should sue the gas station where he bought his gas.
       
    2. 
       He never should have expected any problems with buying any product, especially gas for his car.
       
    3. 
       He should provide the gas station with documentation of his purchase and all repair costs.
       
    4. 
       He should assume that the gas station should be able to track his purchase based on video cameras.
       
    5. 
       All of these are correct.
       
14. 
    Think about consumer complaints. Which of the following is correct?
    
    1. 
       The first step is to contact the company headquarters.
       
    2. 
       If you don't get satisfaction from the local store, you should take legal action as the next step.
       
    3. 
       An arbitrator will provide a nonbinding process to settle your differences.
       

. a mediator in order to avoid legal action.

1. 
   process used to settle grievances in a nonbinding process is called a(n)
   
   1. 
      Arbitration.
      
   2. 
      County health department.
      
   3. 
      Lawsuit.
      
   4. 
      Mediation.
      
   5. 
      Two of these are correct.
      

103. 
     Tamra went to a restaurant and had an unpleasant experience that sent her to the hospital. The problems at the restaurant should be handled by
     
     1. 
        Arbitration.
        
     2. 
        The county health department.
        
     3. 
        A lawsuit.
        
     4. 
        Mediation.
        
     5. 
        The doctor who treated her.
        
104. 
     Which of the following is not a legal option for upper-income consumers?
     
     1. 
        Class action lawsuits
        
     2. 
        A lawyer
        
     3. 
        A legal aid society
        
     4. 
        Prepaid legal services
        
     5. 
        Small claims court
        
105. 
     Sally has a major problem with a product and thinks that many others have had the same problem. Which of the following is the best way to resolve the problem?
     
     1. 
        Class action lawsuit
        
     2. 
        A lawyer
        
     3. 
        A legal aid society
        
     4. 
        Prepaid legal service
        
     5. 
        Small claims court
        
106. 
     Steven needs to write a will. His best resource is (a)
     
     1. 
        Class action lawsuit.
        
     2. 
        Lawyer.
        
     3. 
        Legal aid society.
        
     4. 
        Prepaid legal service.
        
     5. 
        Small claims court.
        
107. 
     Adolph has a low income and needs legal assistance. He should make use of (a)
     
     1. 
        Class action lawsuit.
        
     2. 
        Lawyer.
        
     3. 
        Legal aid society.
        
     4. 
        Prepaid legal services.
        
     5. 
        Small claims court.
        
108. 
     If you want to pay a set fee to receive unlimited or reduced-fee assistance, you should use (a)
     
     1. 
        Class action lawsuit.
        
     2. 
        Lawyer.
        
     3. 
        Legal aid society.
        
     4. 
        Prepaid legal services.
        
     5. 
        Small claims court.
        
109. 
     If you have a problem whose remedy will be $1,500-$3,000, the appropriate tool to use would be (a)
     
     1. 
        Class-action lawsuit.
        
     2. 
        Lawyer.
        
     3. 
        Legal aid society.
        
     4. 
        Prepaid legal services.
        
     5. 
        Small claims court.
        
110. 
     The unit price of a two-pound (32-ounce) box of brown sugar that costs $3.20 is
     
     1. 
        $0.10 per ounce.
        
     2. 
        $0.10 per pound.
        
     3. 
        $1.60 per ounce.
        
     4. 
        $3.20 per pound.
        
     5. 
        $6.40 per pound.
        
111. 
     The unit price of a 64-ounce carton of orange juice that costs $3.20 is
     
     1. 
        $0.05 per ounce.
        
     2. 
        $0.10 per ounce.
        
     3. 
        $0.20 per ounce.
        
     4. 
        $1.00 per ounce.
        
     5. 
        $3.20 per ounce.
        
112. 
     Using the following information, what is the cost to buy a car?
     

A. $3,000. B. $21,200. C. $24,560. D. $25,200. E. $28,200.

103. 
     Using the following information, what is the cost to lease a car?
     

A. $18,000 B. $18,530 C. $18,560 D. $18,830 E. $19,030

103. 
     Define two of the following:
     

1. 
   Comparison shopping
   
2. 
   Compulsive shopping
   
3. 
   Impulse shopping
   

103. 
     What is the difference between an express warranty and an implied warranty?
     

103. 
     Why are service contracts for vehicles not a good deal?
     

103. 
     What are three sources of information for buying decisions?
     

103. 
     When choosing a vehicle, what are some categories and examples of optional equipment that may be considered?
     

103. 
     How is a lease different from a purchase?
     
104. 
     Why is it a bad idea to mention the trade-in vehicle early in the purchase process?
     

103. 
     What are three sales techniques that should be avoided when buying a car?
     

103. 
     What are five factors that affect the operating costs of a vehicle?
     

103. 
     Assume that you are completely dissatisfied with a purchase. What are the four steps in order that you should take to resolve your problem?
     

103. 
     What is the difference between mediation and arbitration?