Questions and Answers
What are some of the considerations to be taken when comparison shopping? (Select all that apply)
What are the steps in purchasing or leasing a vehicle?
Identify several alternative vehicles, gather information and test-drive, compare each alternative to established criteria.
Considerations in purchasing or leasing a vehicle may include which of the following? (Select all that apply)
What are subjective resources?
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What are objective resources?
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Discretionary spending refers to spending for goods and services beyond essentials.
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Discretionary spending allows consumers freedom of choice in what?
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What tools can consumers use to evaluate discretionary spending decisions? (Select all that apply)
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What is comparison shopping?
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Study Notes
Comparison Shopping Considerations
- Key factors include value, time, convenience, and dollar costs.
- Payment options play a crucial role in budget planning.
- Price negotiations can influence final costs and terms.
- Be aware of conspicuous consumption's consequences on spending behavior.
- Opportunity cost should be considered when evaluating purchases.
- Analyze costs and benefits of each option to make informed decisions.
Steps in Vehicle Purchasing/Leasing
- Identify multiple vehicle alternatives, both new and used.
- Gather relevant information about each vehicle.
- Test-drive several options to assess performance and features.
- Compare alternatives against personal criteria, noting the importance of each criterion.
Considerations for Vehicle Purchase/Lease
- Evaluate performance aspects including safety ratings and reliability.
- Check the odometer for mileage and annual average miles driven.
- Analyze fuel consumption relative to personal or family needs.
- Consider size, appearance, and overall aesthetic appeal.
- Set a price/payment limit, and factor in insurance costs.
- Account for taxes, maintenance needs, warranty options, and depreciation.
Subjective Resources in Decision-Making
- Advertisements can influence consumer perceptions and choices.
- Sales representatives may offer guidance but can also have biased interests.
- Consumer reviews provide insights into product performance and satisfaction.
Objective Resources for Evaluations
- Utilize statistically based research for factual information on products.
- Turn to published consumer data, such as Consumer Reports, for unbiased recommendations.
Discretionary Spending Defined
- Refers to expenditures exceeding basic needs like food, shelter, and clothing.
- Allows consumers to allocate funds for non-essential goods and services.
Freedom of Choice in Discretionary Spending
- Consumers can decide on spending for education, healthcare, entertainment, transportation, and technology.
- The ability to choose impacts overall financial management and lifestyle.
Tools for Evaluating Discretionary Spending
- Weigh costs and benefits of alternative spending options for effective budgeting.
- Utilize decision models to clarify financial choices and outcomes.
- Consider saving as a viable alternative to immediate spending.
Understanding Comparison Shopping
- Involves checking multiple stores for the same product to secure the best price.
- Aims to identify the highest quality product for the cost, enhancing spending efficiency.
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Description
This quiz encompasses various considerations to keep in mind when comparison shopping, including value, time, and payment options. Additionally, it covers the steps involved in purchasing or leasing a vehicle, emphasizing important alternative choices for consumers.
