Spending

Which strategy best helps a famous brand company reach consumers?

• advertising nationally

• marketing selectively

Which activity is done in Step 2 of comparison shopping?

• Assess the purchase objectively.

• Buy a product.

What is the purpose of comparison shopping?

• attempting to find the best deal on a product

• reading reviews to make sure a product is good

Why do prices increase when demand for a product is high?

• Companies know that people will be willing to spend more to get an in-demand product.

• Companies DO NOT know that people will be willing to spend more to get an in-demand product.

At what point does buying in bulk stop being a wise spending choice?

• when the consumer buys more than is needed

• when the consumer DO NOT buys more than is needed

Why might people choose to rent a home rather than buy a home?

• They may be relocated for a job

• They may NOT be relocated for a job

Building equity in a home is a good thing because

• equity in a home increases the homeowner’s net worth.

• equity in a home DECREASE the homeowner’s net worth.

A monthly fixed rate mortgage payment

• never changes.

• decreases annually.

Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. He is looking to purchase both a car and a place to live, and he is very interested in building up equity and credit.

Which of the following illustrates the most economically sound choice for Brad?

• buying both a car and a home

• leasing a car and buying a home

What is not a potential risk of purchasing a used car?

• used cars can have lower initial cost

• used cars can require repairs sooner