HDFS 239 Quiz Questions and Answers

The first TV advertisement cost: - ANSWER-$9 The U.S. and Japanese market for diamond engagement rings was mainly created by a marketing campaign led by De Beers. Where are they turning to grow demand for diamonds? - ANSWER-China The big idea behind lifestyle advertising is for producers to create a connection to consumers' feelings, lives and ideas instead of info about the product itself - ANSWER-True Misleading advertisements can lead to: - ANSWER-Fines from the FTC and class-action lawsuits Trump care is an official insurance program available to all Americans - ANSWER-False Price discrimination in airline tickets - ANSWER-benefits consumers traveling for leisure The price of an airline ticket can be influenced by - ANSWER-price matching, predatory pricing, and competition CAFE limits apply to: - ANSWER-fleets of automobiles R-value applies to: - ANSWER-standards of measurement for home insulation The most effective way to reduce environmental impact of economic activity is to: - ANSWER-plans that involve convincing consumers and producers to behave differently, and to regulate production Of the following, which was the underlying trigger of the economic crisis of 2008? - ANSWER-declining housing prices The government response to the 2008 Economic Crisis included the: - ANSWER-TARP, Dodd-Frank Law, creation of CFPB Banks sell their mortgages - ANSWER-often Taking too much risk, because someone else will suffer the negative consequences is the definition of - ANSWER-moral hazard A CFPB Rule requires that consumers have _____ business days to review their Loan Estimate and Closing Disclosure - ANSWER-Three Because of its intent and impact on consumers, the 1998 Homeowners Protection Act is also known as the - ANSWER-PMI Cancelation Act A NINA Loan is/was an - ANSWER-Way to qualify more consumers for home loans no income no assets loan imprudent loan entered into by both banks and consumers Millennial buy fewer homes because - ANSWER-delay of family formation staying in childhood homes The underlying assumption about bankruptcy is - ANSWER-people are more important than debts When investing in real estate, big profits come from the use of - ANSWER-leverage An advisor claiming to be a true fiduciary - ANSWER-always acts in the client's interest A penny doubled everyday for a month is worth more than $1,000,000 - ANSWER-True Hindsight bias, attribution bias, and confirmation bias all contribute to investor - ANSWER-overconfidence Partial ownership of a single company is represented in - ANSWER-stocks Bonds are issued by: - ANSWER-local governments federal governments companies Diversification is best achieved by: - ANSWER-Investing in a mix of stocks and bonds If an individual investor does not have a lot of money to invest, the best option is to: - ANSWER-Select an appropriate mutual fund Insurance is: - ANSWER-a way for consumers to pool resources and share risk A mutual fund is: - ANSWER-a way for consumers to pool resources and share risk FICA contributions, deducted from most American's paychecks, are insurance contributions that may yield benefits to: - ANSWER-survivors disabled workers older workers Each year, how many people go bankrupt in Switzerland due to medical debt? - ANSWER-0 Per capita health care spending in Japan and Great Britain is about ______ the U.S. level of spending - ANSWER-half A major criticism of socialized and national health care systems is: - ANSWER-Waiting lists for elective care lack of consumer choice lack of competition Based on class research and the frontline video - ANSWER-users of national health care systems like it, and nonusers don't Visits to the doctor in Japan are likely to be: - ANSWER-very short, just a few minutes Japan keeps health care costs down with - ANSWER-strict government price controls In Germany, health insurance premiums are paid by consumers based on - ANSWER-income In Germany: - ANSWER-doctors earn less and insurance companies make little to no profit What country attempted to pull the best from others as they built a new healthcare system? - ANSWER-Taiwan Which country went through significant reform and is not like the U.S. - ANSWER-Switzerland Does calorie labeling at fast food restaurants lead to healthier eating? - ANSWER-No, studies show little effect on choice when calories are posted. In the story about wine tasting, it is clear that seller/producer provided presentation of contextual influences is not important when it comes to evaluating wine quality - ANSWER-False One 12 oz can of coca cola contains the same amount of sugar as 4 krispy kreme donuts - ANSWER-True Changes in the food label to highlight added sugar content are - ANSWER-Considered a necessary starting point in helping consumers Under a federal rule, retailers must provide a written warranty for any product costing more than: - ANSWER-$15 In most states sellers can claim that a product is being sold "as-is" thus removing implied warranty - ANSWER-True The 2,000 calorie base in food labels is used because it is the recommended daily caloric intake for all consumers - ANSWER-False In the calorie detective video, - ANSWER-The accuracy of stated calorie amounts is called into question The national consumers league was founded in - ANSWER-1899 Which of the following is the least formal approach to settling a consumer complaint? - ANSWER-mediation Marmola proved to be an unsafe drug that was marketed to help those suffering - ANSWER-obesity The 1906 Pure Food and Drug Act required truth in labeling but was largely ineffective because - ANSWER-product advertising was not regulated manufacturers had to be proven to knowingly mislead consumers did not cover cosmetics or medical devices The 1938 Food, Drug, and Cosmetic Act is still the foundation of consumer protection and FDA regulation for sales and and marketing of food, drugs, cosmetics and medical devices - ANSWER-True The timeline of U.S. consumer activism begins in the: - ANSWER-late 1800s Thalidomide a known cause of serious birth defects - ANSWER-was banned in 1962 now is used to treat diseases first manufactured by a German company What consumers want is explained by: - ANSWER-physiology psychology sociology The concept of consumer utility: - ANSWER-is subjective, and therefore cannot be measured Demand elasticity measures consumer purchasing response to changes in: - ANSWER-price Our tax system is approximately: - ANSWER-proportional ? Robert Kenny found that the highest aspiration of these families was to: - ANSWER-be a good parent Economics is the study of: - ANSWER-scarcity human response to incentive