Understanding Needs and Wants in Finance

What is the primary difference between a 'need' and a 'want' from a financial standpoint?

• A need is something you can live without, while a want is essential for survival.

• A need is essential for survival, while a want is something you can live without.

• A need is always more expensive than a want.

• A need is something you desire, while a want is something you require.

Which of the following is an example of a 'need'?

• A smartphone

• A designer handbag

• Food and water

• A luxury car

Which advertising technique involves using a famous person to promote a product?

• Product placement

• Celebrity endorsement

• Patriotism

• Bandwagon

What is the purpose of product placement in advertising?

• To directly compare products with competitors

• To subtly integrate a product into a movie or TV show

• To use national symbols to promote a product

• To create a sense of urgency to buy a product

Which advertising technique uses national symbols or themes to promote a product?

• Product placement

• Celebrity endorsement

• Patriotism

• Bandwagon

What does the bandwagon advertising technique encourage consumers to do?

• To buy a product because everyone else is doing it

• To buy a product because it is the cheapest option

• To buy a product because it is made locally

• To buy a product because it is endorsed by a celebrity

Which of the following is an example of a 'want'?

• Medicine

• Shelter

• Designer clothing

• Clean water

How can identifying needs and wants help in financial planning?

• It helps in spending more on wants.

• It helps in prioritising spending on essentials.

• It encourages impulsive buying.

• It reduces the need for budgeting.

Which of the following is NOT a characteristic of a 'need'?

• Essential for survival

• Can be postponed indefinitely

• Necessary for basic living

• Often a fixed expense

What is a common effect of celebrity endorsement on consumers?

• It makes the product appear less desirable.

• It often increases the perceived value of the product.

• It guarantees the product is the best in the market.

• It decreases the product's price.