Consumer Economics: Ch 3 Test

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Laissez Faire
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abstention by governments from interfering in the workings of the free market
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OSHA
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government agency who protects construction workers and job sites
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EPA
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federal agency responsible for enforcing laws that protect the environment; guarantee clean air and water and a safe environment
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EEOC
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protects against discrimination against minorities (race and gender)
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SEC
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government agency that monitors investments (fair market, no inside trading, etc.)
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Workman’s Comp
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employer-paid insurance program that covers expenses for work related injuries, illnesses, and death; pays medical, lost wages, loss of use/disfigurement
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Unemployment Comp
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government sponsored insurance program designed to provide income for people who have lost their jobs through no fault of their own; employer pays at state and federal level; based on number of dependents; must be actively seeking employment
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Medicare
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federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease
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Medicaid
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government sponsored health insurance designed for people with low incomes or disabilities, regardless of age; affordable health care act; Obamacare
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Cease and Desist Order
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an administrative or judicial order requiring a business to stop conducting unfair or deceptive practices, such as deceptive advertising
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Punitive Damages
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damages exceeding simple compensation and awarded to punish the defendant
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CPSC
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federal agency that protects consumers from dangerous products
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Implied Warranty
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an unwritten guarantee that the product is of sufficient quality to fulfill the purpose for which it was designed; merchantability of product (does what it is supposed to do)
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Consumer Markup
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markup/cost of merchandise
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Retail Markup
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markup/sales price
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Loss Leader
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product priced below cost to attract customers to the store; legal; watch for prices of other products
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Pyramid Scheme
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a type of financial fraud in which people pay to join an organization in exchange for the right to sell memberships to other people; no product provided
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Small Claims Court
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a court that handles suits for small dollar amounts without the services of a lawyer
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Provide public goods Provide employment Protect public well being
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What are the 3 functions of government?
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pays for disability, dismembered, death (survivor), and retirement
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What are the benefits of social security?
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pays medical, lost wages, loss of use, and disfigurement
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What are the benefits of workman’s comp
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caveat emptor- your responsibility to know what you are buying caveat venditor- the seller must inform you about what you are buying technology and lawsuits
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What is the difference between caveat emptor and caveat venditor? What brought about the change?
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full- replace, refund, and repair any defective product limited- exception specifics on the full warranty
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What is the difference between a full and limited warranty?
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They must intentionally mislead you. There must be value that is lost.
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What are the 2 ingredients for fraud?
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regulate advertising and business
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What are the 2 responsibilities of the FTC?
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Prevent unfair or deceptive business practices
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Consumer protection laws are meant to:
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Change online account passwords frequently
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Which would best protect against identity theft?
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Shred them in a paper shredder
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What is the safest way to dispose of old bank account statements?
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Open a credit card Sign up for electricity service Get a cell phone contract
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Identity thieves can use your personal information to:
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Hang up and call back using the bank’s official phone number
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The safest action to take if someone claiming to be from your bank calls you to ask for account information is to:
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Continue to monitor your credit reports and accounts Keep all copies of relevenant documentation
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After a suspected identity fraud case has been resolved you should:
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To protect consumers by regulating financial products and services
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The primary goal of the Consumer Financial Protection Bureau is:
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Verified trusted sources that need it
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It is generally safe to provide your Social Security Number to:
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Cash receipts
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Which document puts you at the LEAST risk of identity theft?
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Review your recent credit card statements
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The best way to investigate fraudulent transactions on your credit card is to:
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While on public Wi-Fi at a coffee shop From stored password data on your cell phone
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Where could an identity thief access your personal information?
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Limit how many credit cards you carry
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What is a way to protect your social security number and other sensitive information from identity theft?
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Your credit report displays accounts you did not open
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Which of the following scenarios might indicate that you have been a victim of identity theft?
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Avoid using unsecured wireless networks
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Which of the following describes an effective strategy for protecting yourself against identity theft?

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