Spending and Saving Ch. 15 Sec. 2 Pp

Making Spending Decisions Values and pressures Choosing what to buy: 1) price, 2) quality, 3) features, 4) warranty and service, 5) sales/discount Cash or credit

Making Savings Decisions Liquidity Income Safety Insurance – 1) life, 2) health, 3)disability, 4) property (house, car)

Protecting Workers and Consumers 1927 – Food and Drug Administration (FDA) makes sure food and drugs are safe and labeled correctly 1930s – Federal government begins protecting workers 1971 – Occupational Safety and Health Administration (OSHA) enforces safety and health standards in workplace 1972 – Consumer Product Safety Commission (CPSC) makes safety rules for toys, clothes, and appliances.

Questions What should a wise shopper consider when buying a product? a.Can you afford it? b.Does quality match price? c.Does it have needed features? d.All of the above.

Questions Consumers who are about to borrow money for purchases should calculate a.the manufacturer’s warranty. b.the liquidity of their investment. c.the purchase price plus interest. d.the fringe benefits.

Questions Which is not a way to save money? a.bank account b.stocks and bonds c.mutual funds d.vacation

Questions When a manufacturer gives you a written promise to repair a product that you purchased from them, they have agreed to which of the following? a.labor contract b.parts-only contract c.warranty d.insurance

Questions Why do people have difficulty making choices about what to buy? a.hard to decide whether to pay by credit card b.advertising affects decisions c.friends do not own similar items d.cannot afford to make new purchases

Questions What should a wise shopper consider when buying a product? a.Can you afford it? b.Does quality match price? c.Does it have needed features? d.All of the above.

Questions Assistance in rebuilding homes after natural disasters is a benefit of a.liability insurance. b.property insurance. c.health insurance. d.life insurance.