Mr. Weiss

1. Mr. Weiss Unit 2 • Before you can comparison shop, you must • a. make a rational choice. • b. gather information about the product. • c. decide how to use your purchase. • d. read all contracts and warranties.

2. Mr. Weiss Unit 2 • Before you can comparison shop, you must • a. make a rational choice. • b. gather information about the product. • c. decide how to use your purchase. • d. read all contracts and warranties.

3. Mr. Weiss Unit 2 • Education, occupation, experience, and health all make a difference in a person’s • earning power and ability to consume. • ability to comparison shop. • c. exposure to advertising. • d. rational choice.

4. Mr. Weiss Unit 2 • Education, occupation, experience, and health all make a difference in a person’s • earning power and ability to consume. • ability to comparison shop. • c. exposure to advertising. • d. rational choice.

5. Mr. Weiss Unit 2 • Which type of advertising would be most helpful for a consumer who needs to decide if a particular digital camera is right for her? • discretionary advertising • deceptive advertising • competitive advertising • d. informative advertising

6. Mr. Weiss Unit 2 • Which type of advertising would be most helpful for a consumer who needs to decide if a particular digital camera is right for her? • discretionary advertising • deceptive advertising • competitive advertising • d. informative advertising

7. Mr. Weiss Unit 2 18. Sort by:Price Shipping State Sort by:Avail. Merchant J $312.00 24.95 NY YES Merchant K $314.00 19.95 NY YES Merchant L $316.00 19.37 NY YES Merchant M $318.00 FREE FED EX NJ YES Brand New Fast Service SHIPPING The illustration shows an online price comparison for a particular digital camera. Which merchant offers the camera at the lowest total price? a. Merchant J c. Merchant L b. Merchant K d. Merchant M

8. Mr. Weiss Unit 2 18. Sort by:Price Shipping State Sort by:Avail. Merchant J $312.00 24.95 NY YES Merchant K $314.00 19.95 NY YES Merchant L $316.00 19.37 NY YES Merchant M $318.00 FREE FED EX NJ YES Brand New Fast Service SHIPPING The illustration shows an online price comparison for a particular digital camera. Which merchant offers the camera at the lowest total price? a. Merchant J c. Merchant L b. Merchant K d. Merchant M

9. Mr. Weiss Unit 2 • A financial institution that is owned and operated by members to provide savings accounts and low-interest loans is a • savings and loan. • credit union. • commercial bank. • d. savings bank.

10. Mr. Weiss Unit 2 • A financial institution that is owned and operated by members to provide savings accounts and low-interest loans is a • savings and loan. • credit union. • commercial bank. • d. savings bank.

11. Mr. Weiss Unit 2 • Even when a person declares personal bankruptcy, he or she must continue to pay • all creditors. • credit card bills. • taxes. • d. ongoing court costs.

12. Mr. Weiss Unit 2 • Even when a person declares personal bankruptcy, he or she must continue to pay • all creditors. • credit card bills. • taxes. • d. ongoing court costs.

13. Mr. Weiss Unit 2 • What is the main factor lenders consider in determining a person’s creditworthiness? • a. finance charges c. character • b. cash available d. credit rating

14. Mr. Weiss Unit 2 • What is the main factor lenders consider in determining a person’s creditworthiness? • a. finance charges c. character • b. cash available d. credit rating

15. Mr. Weiss Unit 2 32. *Greater mobility *Feeling of freedom to choose another place if dissatisfied *Pay only a small security deposit *No direct maintenance costs *More money for other purchases All of the items in the list are a. home ownership advantages. c. renting advantages. b. home ownership disadvantages. d. renting disadvantages.

16. Mr. Weiss Unit 2 32. *Greater mobility *Feeling of freedom to choose another place if dissatisfied *Pay only a small security deposit *No direct maintenance costs *More money for other purchases All of the items in the list are a. home ownership advantages. c. renting advantages. b. home ownership disadvantages. d. renting disadvantages.

17. Mr. Weiss Unit 2 • People who are able to use or store large quantities of bulk food items can save money by shopping at • a. large supermarkets. c. discount stores. • b. convenience stores. d. warehouse stores.

18. Mr. Weiss Unit 2 • People who are able to use or store large quantities of bulk food items can save money by shopping at • a. large supermarkets. c. discount stores. • b. convenience stores. d. warehouse stores.

19. Mr. Weiss Unit 2 • Closing costs on a home include such items as the title search, legal costs, loan application, credit report, house inspection, and • a. homeowner’s insurance. c. taxes. • b. mortgage payment. d. security deposit.

20. Mr. Weiss Unit 2 • Closing costs on a home include such items as the title search, legal costs, loan application, credit report, house inspection, and • a. homeowner’s insurance. c. taxes. • b. mortgage payment. d. security deposit.

21. Mr. Weiss Unit 2 • Comparison shopping for food involves a trade-off between • a. time and money. c. time and effort. • b. quality and quantity. d. variety and price.

22. Mr. Weiss Unit 2 • Comparison shopping for food involves a trade-off between • a. time and money. c. time and effort. • b. quality and quantity. d. variety and price.

23. Mr. Weiss Unit 2 • According to the graph, in what period did the S&P 500 stocks make their greatest gains? • 1985-1990 • 1990-1995 • 1995-2000 • d. after 2000

24. Mr. Weiss Unit 2 • According to the graph, in what period did the S&P 500 stocks make their greatest gains? • 1985-1990 • 1990-1995 • 1995-2000 • d. after 2000

25. Mr. Weiss Unit 2 • Savings bonds sell for less than their face value because • banks compete to sell them. • this is how they pay interest • they pay dividends twice a year. • d. interest is tax-exempt.

26. Mr. Weiss Unit 2 • Savings bonds sell for less than their face value because • banks compete to sell them. • this is how they pay interest • they pay dividends twice a year. • d. interest is tax-exempt.

27. Mr. Weiss Unit 2 ...75 years ago, ...three salesmen created the first mutual fund and opened up what was once an exclusive province of the affluent to just about everyone. When the Massachusetts Investors Trust made its debut in March 1924, it had $50,000 in assets and owned 45 stocks.... By pooling investments, the fund made shares in American companies accessible to a broader market... (the) true innovation was allowing investors to redeem shares upon request, at market value of the underlying stocks. Source: U.S. News & World Report, April 5, 1999 ____ 56. According to the passage, when investors in the first mutual fund decided to sell their shares, how much money did they receive? a. the amount they originally paid b. the amount they originally paid, plus interest c. the amount other investors were paying for the same stocks in the fund d. the amount another investor agreed to pay them for their shares

28. Mr. Weiss Unit 2 ...75 years ago, ...three salesmen created the first mutual fund and opened up what was once an exclusive province of the affluent to just about everyone. When the Massachusetts Investors Trust made its debut in March 1924, it had $50,000 in assets and owned 45 stocks.... By pooling investments, the fund made shares in American companies accessible to a broader market... (the) true innovation was allowing investors to redeem shares upon request, at market value of the underlying stocks. Source: U.S. News & World Report, April 5, 1999 ____ 56. According to the passage, when investors in the first mutual fund decided to sell their shares, how much money did they receive? a. the amount they originally paid b. the amount they originally paid, plus interest c. the amount other investors were paying for the same stocks in the fund d. the amount another investor agreed to pay them for their shares

29. Mr. Weiss Unit 2 • A person who buys a stock for $20 and sells it for $30 has earned $10 in • a. interest. c. dividends. • b. profit per share. d. capital gains.

30. Mr. Weiss Unit 2 • A person who buys a stock for $20 and sells it for $30 has earned $10 in • a. interest. c. dividends. • b. profit per share. d. capital gains.

31. Mr. Weiss Unit 2 • The U.S. personal saving rate (PSR) fell into negative territory during the third quarter of 2005 and has remained close to zero since then.... Simply put, a negative PSR implies that U.S. households are spending more income than they have to spend. Why? Households may expect that their incomes will increase in the long-run. They also have access to ... credit cards, home equity loans, and subprime mortgages that allow expected future wealth to be transformed into current purchasing power. Other possible reasons for the recent “consumption boom” include low inflation, low long-term interest rates, and the perception that programs such as Social Security will provide financial support in later years. • Source: U.S. Bureau of Economic Analysis, 2007 • This passage suggests that the low savings rate is partially due to • a booming economy. • access to credit, like credit cards and home equity loans. • high homeownership • d. high incomes.

32. Mr. Weiss Unit 2 • The U.S. personal saving rate (PSR) fell into negative territory during the third quarter of 2005 and has remained close to zero since then.... Simply put, a negative PSR implies that U.S. households are spending more income than they have to spend. Why? Households may expect that their incomes will increase in the long-run. They also have access to ... credit cards, home equity loans, and subprime mortgages that allow expected future wealth to be transformed into current purchasing power. Other possible reasons for the recent “consumption boom” include low inflation, low long-term interest rates, and the perception that programs such as Social Security will provide financial support in later years. • Source: U.S. Bureau of Economic Analysis, 2007 • This passage suggests that the low savings rate is partially due to • a booming economy. • access to credit, like credit cards and home equity loans. • high homeownership • d. high incomes.

33. Mr. Weiss Unit 2