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Flashcards in chapter 7 Deck (33)
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1

In certain circumstances, it is okay to stretch the truth to get a bargain(t/f)

false

2

The Federal Trade Commission found that people who reported having more debt than they could handle were more likely to be victims of consumer fraud involving

credit repair and debt consolidation

3

Making informed choices as a consumer will usually yield savings(t/f)

true

4

Most of the items at a pawnshop are stolen(t/f)

false

5

Joe tries to bargain at an electronics store but is unable to negotiate the price down. What should be his next step?

walk away

6

When buying things at an auction, it is important that you

all of the above

7

Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract

forclosure

8

The process of quantifying costs and benefits of a decision

cost-benefit analysis

9

“The Lucky Sevenʺ rules can get you incredible deals on the stuff you buy every day, but they only work if you:

use them

10

Which of the following statements is false about bargening

Your choices as a consumer have no impact on the larger social environment.

11

To bargain for a lower price

neogatiate

12

Excluding the United States, most countries use negotiating as a way of life(t/f)

true

13

Shopping for bargains is part of a healthy financial plan because it makes your hard-earned money go further(t/f)

true

14

Using cash gives you more bargaining power than using credit.(t/f)

true

15

The ability to walk away from a purchase when negotiating

walk-away power

16

The good guy, bad guy technique is a negotiating tool that you should be aware of.(t/f)

true

17

Which of the following is true about the ʺIf Iʺ take-away technique?

This technique involves negotiating the lowest price possible, then throwing something else into the deal.

18

Which of the following describes why using cash is a great bargaining tool?

all of the above

19

Getting the best deal on a purchase involves doing all of the following except

Being first in line for a new product

20

The difference between the wholesale price and retail price

markup

21

The exchange of goods or services without the use of money

barber

22

Which of the following is typically not a good place to find a deal?

mall

23

Learning to be quiet is actually a powerful tool in negotiation(t/f)

true

24

Which of the following is not recommended when selling something you own?

Find an uninformed buyer and charge the highest price possible.

25

Having to do with a person’s honesty and moral attributes

intergrity

26

Which of the following statements is false?
1.Negotiation involves a conversation of back-and-forth, give-and-take
2.A great deal often just happens by accident.
3.If negotiation is done correctly, it will end up being a win -win deal.
4.Just asking for a great deal doesn’t always mean that you’ll get one.

a great deal often just happens by accident

27

Being married (or emotionally attached) to a purchase will cause you to lose bargaining power.(t/f)

true

28

Type of yard sale with more items, usually the entire contents of a household

estate sale

29

Store return policies must balance customer service and profits. As a consumer, to ensure the best possible store return process, you should:

All of the above

30

Retail store where people sell items and the owner of the shop gets a percentage of the sale

consignment shop