Quiz - Topic 1: Consumer and Financial Decisions Flashcards
(15 cards)
What is the difference between needs and wants?
Answer: Needs are essential for survival, while wants improve quality of life.
Explanation: Needs include food, shelter, and clothing, which are necessary for living, while wants are things like designer clothes or gaming consoles, which enhance comfort or enjoyment.
Which of the following is an example of a service?
Answer: A haircut.
Explanation: Services involve actions provided to consumers, such as haircuts, while goods are physical products, like smartphones or books.
What is scarcity in the context of commerce?
Answer: The limited availability of resources, forcing consumers to make choices.
Explanation: Since resources (money, materials, time) are limited, individuals and businesses must decide how to allocate them wisely.
Which factor is most likely to influence a consumer’s decision to buy a product online?
Answer: Convenience.
Explanation: Online shopping is attractive because it saves time, avoids travel, and allows easy comparison of products.
What is one advantage of using cash over cashless transactions?
Answer: Cash allows consumers to physically see how much they are spending.
Explanation: Handling cash can help manage spending better, as you can immediately see your money being used.
What is the purpose of the Competition and Consumer Act 2010?
Answer: To protect consumers from unfair business practices.
Explanation: This law ensures businesses follow ethical practices and protects consumers from misleading advertising or faulty products.
What is a key feature of a simple contract?
Answer: It includes an offer, acceptance, and consideration.
Explanation: A contract must involve an offer, someone agreeing to that offer, and an exchange of value (money, services, goods).
What is one consequence of poor financial management?
Answer: Excessive debt.
Explanation: Mismanaging money can lead to accumulating debt, making it harder to pay bills or afford necessities.
Which of the following is an example of a long-term financial strategy?
Answer: Contributing to a superannuation fund.
Explanation: Superannuation is a savings system for retirement, ensuring financial security in the future.
What is one way to address financial difficulty?
Answer: Negotiating an alternative payment plan.
Explanation: If struggling with payments, discussing a revised plan with lenders can make managing debts easier.
What is a common type of scam related to online shopping?
Answer: Fake websites that steal personal information.
Explanation: Scammers create fake stores to trick buyers into giving financial details or sending money without delivering products.
What is one benefit of using a budget?
Answer: It helps track expenses and avoid overcommitment.
Explanation: Budgeting allows better money management and prevents overspending.
Why is it important to consolidate lost superannuation accounts?
Answer: To avoid paying multiple fees and maximize retirement savings.
Explanation: Having multiple accounts means paying extra fees, which reduces the amount available for retirement.
What is one impact of housing affordability on consumers?
Answer: It makes saving for a home more challenging.
Explanation: Higher house prices mean people must save for longer before they can afford to buy a home.
How has technology impacted payment processes?
Answer: It has introduced mobile wallets and digital payment methods.
Explanation: Payment apps like Apple Pay and Google Pay make transactions easier, reducing reliance on cash or credit cards.
