Consumption and Benefits

What is the role of government assistance programs?

• to provide benefits to those who want them.

• to provide benefits to those whose employers paid into them.

• to provide benefits to those who qualify for them.

• to provide benefits to those who paid into them.

Which of the following is not addressed by a government assistance program?

• food insecurity

• health care issues

• housing

• travel

Of brick-and-mortar retailers, online retailers, and warehouse clubs, which is most likely to allow you to make a purchase at 3:00 A.M.?

• none of them

• brick-and-mortar retailers

• warehouse clubs

• online retailers

Which of the following is true of brick-and-mortar retailers?

• They can repossess the item you buy at any time

• You cannot examine an item before you buy it.

• They do not collect sales tax.

• You can usually take the item you purchased with you.

What is the main reason to avoid renting to own?

• If the item breaks, you have to buy a new one.

• You are buying used merchandise

• It can be weeks before the item is delivered.

• You will pay much more than the cost of the item in a short period of time.

Which of the following is true of credit cards?

• You cannot use them to buy something that costs more money that you have in the bank.

• They generally charge 3% to 5% interest.

• When you use them, you never really know how much you owe.

• They can be used to make online purchases.

Which of the following is an advantage of buying your car over leasing?

• When you want to get a new car, you have to deal with selling your current one.

• The down payment for a car loan is usually smaller than the security deposit for a lease.

• You are always driving a new car.

• You will end up owning the car, which may be worth a fair amount of money.

Which of the following is an advantage of buying your home over renting?

• You do not have to worry about the housing market in your area.

• The amount you pay each month is set by the terms of your mortgage.

• If something breaks, you have to fix it or pay to have it fixed.

• Your mortgage payments will far exceed the value of your home.

Which of the following is true of Social Security but not Medicare?

• Money withheld from your paycheck is used to pay benefits to people who are collecting them now.

• Participation in the program is mandatory.

• It provides benefits to people with disabilities.

• It pays benefits to retirees.

What is defined as net pay?

• It is the total amount of money a worker earns in a given pay period.

• It is the money that is subtracted from gross pay to pay for benefits.

• It is the money that is withheld from gross pay to pay taxes.

• It is the money left over after deductions are removed and taxes are withheld from gross pay.