Career Prep Chapter 7 – Flashcards
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Getting the best deal on a purchase involves doing all of the following excep
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Being first in line for a new product
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Which of the following is typically not a good place to find a deal?
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Mall
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Which of the following describes why using cash is a great bargaining tool?
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Cash is emotional, Cash is visual,Cash has immediacy.
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Joe tries to bargain at an electronics store but is unable to negotiate the price down. What should be his next step?
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Walk away
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Which of the following statements is false?
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Your choices as a consumer have no impact on the larger social environment.
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Which of the following is true about the ʺIf Iʺ take-away technique?
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This technique involves negotiating the lowest price possible, then throwing something else into the deal.
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ʺThe Lucky Sevenʺ rules can get you incredible deals on the stuff you buy every day, but they only work if you
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Use them
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The Federal Trade Commission found that people who reported having more debt than they could handle were more likely to be victims of consumer fraud involving
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Credit repair and debt consolidation
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Which of the following is not recommended when selling something you own?
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Find an uninformed buyer and charge the highest price possible.
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Store return policies must balance customer service and profits. As a consumer, to ensure the best possible store return process, you should
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Familiarize yourself with the storeʹs return policy prior to your purchase, Hold on to your receipt and keep the labels and price tags on the item, Return the item to the store as quickly as possible
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Which of the following is not recommended if you are trying to make your money go further?
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Buying only name-brand products
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When buying things at an auction, it is important that you
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Familiarize yourself with the item you want to purchase (quality, condition, age, etc.), Donʹt get caught up in the excitement and end up paying more than retail price, Set a limit on the amount you are willing to pay
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Which of the following statements is false?
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A great deal often just happens by accident.
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Using cash gives you more bargaining power than using credit.
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True
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Being married (or emotionally attached) to a purchase will cause you to lose bargaining power.
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True
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Most of the items at a pawnshop are stolen.
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False
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Learning to be quiet is actually a powerful tool in negotiation.
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True
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Shopping for bargains is part of a healthy financial plan because it makes your hard -earned money go further.
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True
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In certain circumstances, it is okay to stretch the truth to get a bargain.
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False
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Excluding the United States, most countries use negotiating as a way of life.
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True
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Making informed choices as a consumer will usually yield savings.
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True
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If youʹre trying to buy something, itʹs not your job to come up with a good price. Make the seller work for your business.
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True
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The good guy, bad guy technique is a negotiating tool that you should be aware of.
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True
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Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
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foreclosure
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The difference between the wholesale price and retail price
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markup
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Having to do with a personʹs honesty and moral attributes
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integrity
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Type of yard sale with more items, usually the entire contents of a household
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estate sale
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Retail store where people sell items and the owner of the shop gets a percentage of the sale
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consignment shop
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The process of quantifying costs and benefits of a decision
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cost-benefit analysis
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A public sale in which property or items of merchandise are sold to the highest bidder
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auction
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To bargain for a lower price
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negotiate
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The exchange of goods or services without the use of money
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barter
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The ability to walk away from a purchase when negotiating
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walk-away power
