Is Hiring a Personal Chef Right for You?

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According to the text, what is the definition of a necessity?

Something that is optional

Something that is indispensable (correct)

Something that is expensive

Something that is luxurious

Which of the following is an example of a necessity according to the text?

A $400 pair of Italian leather boots

A cellphone plan

A gourmet meal at a four-star restaurant

Food to live (correct)

Why is the line between luxuries and necessities not clear-cut?

Because economists, pollsters, and business owners have different opinions

Because the guidelines for necessities are not identical

Because society's perception of necessities can change over time

All of the above (correct)

What is the author's suggestion for categorizing purchases?

Consider personal preferences Signup and view all the answers

According to the Gallup Basic Access Index, what percentage of Americans said yes to all 13 items in the list of basic necessities in 2012?

More than 80% Signup and view all the answers

According to the Warren-Tyagi Formula, what are the three categories into which all spending is divided?

Must-haves, wants, and savings Signup and view all the answers

According to the Pew Survey, which age group described a cellphone as a necessity the most in 2009?

Adults under 30 years old Signup and view all the answers

According to the text, why did many percentages go down between 2006 and 2009 in the Pew Survey?

The 2007-09 Great Recession made many Americans scale back Signup and view all the answers

Which one of the following is NOT considered a necessity according to the text?

Clothing Signup and view all the answers

According to the text, what is the primary function of sleep?

To restock energy reserves Signup and view all the answers

Which one of the following is NOT considered a need according to Abraham Maslow's hierarchy of needs?

Education Signup and view all the answers

What is the main difference between needs and wants according to the text?

Needs are essential for survival, while wants enhance quality of life. Signup and view all the answers

Which of the following is considered a basic need for maintaining optimal living conditions?

Light/Heat Signup and view all the answers

Which of the following is a key component of our emotional and mental well-being?

Empathy Signup and view all the answers

Which of the following is considered a need in order to participate in society in the digital age?

Internet Access Signup and view all the answers

Which of the following is a key component of staying healthy and preventing health issues?

Recreation/Leisure Signup and view all the answers

According to the text, what is the income elasticity of demand?

The concept that explains how much your income affects the demand for luxury goods. Signup and view all the answers

What is a Veblen good?

A luxury good that becomes more desirable as its price increases. Signup and view all the answers

Why do people buy luxury brands according to the text?

To reward themselves for accomplishments. Signup and view all the answers

What is the difference between luxury goods and necessities according to the text?

Luxury goods are for showing off social status, while necessities are for meeting basic needs. Signup and view all the answers

According to Maslow's hierarchy of needs, which of the following is considered a growth need?

Home Theater System Signup and view all the answers

Which of the following is an example of a luxury desire?

Sports Car Signup and view all the answers

According to the text, what is the key controversy of Maslow's hierarchy of needs?

The assumption that self-actualization is achievable without satisfying lower-down needs Signup and view all the answers

According to the text, what is the difference between needs and wants?

Needs are essential for survival, while wants are not necessary for survival Signup and view all the answers

Which of the following is the best way to differentiate between needs and wants?

Needs are required for you to lead a healthy life, while wants are non-essential expenses that you can avoid. Signup and view all the answers

Which of the following is an example of a need?

A suitable amount of clothes Signup and view all the answers

Which of the following is an example of a want?

Expensive clothes Signup and view all the answers

What is the main purpose of differentiating between needs and wants?

To develop the habit of financial planning Signup and view all the answers

Which of the following is true about needs?

Needs are the basics required for you to live at least a somewhat comfortable life. Signup and view all the answers

Which of the following is true about wants?

Wants are non-essential expenses that you can avoid. Signup and view all the answers