Final Part 2

Question 1

Consumer:

Answer 1

• Someone who is WILLING and ABLE to buy a product

- Buys goods or services to satisfy their need and wants

Question 2

What are two kinds of income?

Answer 2

Disposable and discretionary

Question 3

Disposable income:

Answer 3

Money you have left over after taxes, used to pay bills

Question 4

Discretionary Income:

Answer 4

Money you have after all expenses are paid, used for spending and leisure

Question 5

What is the question asked when buying a product?

Answer 5

Do I really need this?

Question 6

Competitive Advertisement:

Answer 6

When you make your product seem better than others

Question 7

Bait and Switch:

Answer 7

Advertising a low price or special offer to get costumers into the store then once in the store deal is no longer available

Question 8

Comparison Shopping:

Answer 8

Comparing the prices of one product in different stores

Question 9

Different between brand name and generic?

Answer 9

Generic is a product of the store where brand names are products of a bigger separate label

Question 10

Warranty:

Answer 10

A guarantee for a repair within a certain period of time

Question 11

Credit:

Answer 11

The receipt of money either directly or indirectly with a promise to pay it back

Question 12

Principal:

Answer 12

the amount you originally borrowed

Question 13

Interest:

Answer 13

the amount you are charged in addition to the principal

Question 14

Why do people use credit?

Answer 14

Instant gratification

Question 15

What are the conditions for you to get credit?

Answer 15

Apply for it at an institution

Question 16

What is a good credit score?

Answer 16

Between 680-850

Question 17

What are the three main credit bureaus?

Answer 17

Experian
Equifax
Transunion

Question 18

What is a function of a credit union?

Answer 18

Companies that record all your financial transactions

Question 19

When you have something negative on your score, it stanys on for how long?

Answer 19

7 years

Question 20

When you file for bankruptcy it stays on for how long?

Answer 20

10 years

Question 21

Bankruptcy:

Answer 21

When you ask the bank to declare that you cannot pay off bills

Question 22

What is the difference between a secure and unsecure loan?

Answer 22

Secure is baked up by collateral

Unsecure is back up by signature

Question 23

What are the advantages of owning a home?

Answer 23

• Prideful ownership
• Good investment
• Do what you want to your property

Question 24

What are the disadvantages of owning a home?

Answer 24

• Mobility
• Maintenance cost
• Less money for other investments

Question 25

Law of Demand:

Answer 25

As prices go up, demand goes down | -Prices and demand are opposite to each other

Question 26

Law of Supply:

Answer 26

As prices go up, supply goes up | -Prices and supply are parallel to each other

Question 27

Principle of diminishing marginal utility: ex.

Answer 27

value of satisfactions goes down with every use -nothing is as good as it is the first time (An all you can eat buffet restaurant)

Question 28

What is the largest franchise?

Answer 28

Subway

Question 29

Franchise:

Answer 29

Large business that has branched out and sells their idea, and name

Question 30

Monopoly:

Answer 30

Business that controls an entire industry or market

Question 31

4 main characteristics of a monopoly:

Answer 31

* One seller exists * No close up substitution * No entry, no competition * Complete control of available supply