Consumer Management

Bait and switch

The unfair selling technique of attracting the consumer with a low-priced product, then getting the consumer to buy a similar-high priced product.

BBB

The organization that serves as a clearinghouse of information about local businesses.

Loss leader

An item marked to a low price to draw customers in.

Product

Type of advertising for a mountain dew ad

Disposable

Money left over after you paid the bills.

Target Market

A specific set of consumers to whom advertisements are aimed for.

24 hours

To be sure you are not buying on impulse how many hours should you wait making a major purchase decision

Price Fixing

When producers conspire to set identical prices.

Comparison

Shopping at several places to get the best value

Unit

Reducing cost to per-unit price

Competition

Provides high quality goods

Company

Advertising that promotes the image of a store, company or retail chain

Cherry Picker

One who purchases only loss leader items

Industry

Advertising intended to promote a general product group, without regard to where these products are purchased (Ex. "Got Milk?")

Consumer Responsibilities

To use products safely, to use information, and to be an educated consumer

Retailer

When a consumer experiences a problem with a product, what should be the first level of appeal

Producers

Manufacturers, farmers, and coal-miners best describe which group of people

Scarcity

The basic economic problem is that our unlimited needs and wants will always surpass our limited resources.

Implied

A warranty assumed to exist

Fraudulent or deceptive practices

Identity theft, forging checks, using fake ID', or lying to customers

Consumer Bill of Rights

In the early 1960's, President Kennedy helped protect consumers during a time which was called "the Consumer Movement" by writing the original parts of the...

FDA

Organization that enforces laws for food, cosmetics, and drugs

CPSC

This organization protects consumers from unreasonable risk from potential problems and handles recalls

FTC

This organization regulates unfair methods of competition, false/deceptive advertising, and deceptive labels

FCC

This organization regulates interstate/international communication by TV, radio, satellite, or cable

Part Owner of the Corporation

When a person buys shares of stock in a corporation, that person becomes...

Preferred Stock

Has a guaranteed rate of return if the company has a profit

Proxy

Assigning your voting right to someone else

Blue-chip

Stocks of well-known companies

Penny

Inexpensive stocks that often sell for less than $5 a share

Bull

When investors show optimism and purchase more stock, or "when the stock market is doing well," the phrase used to describe it is called...

Risk

The understanding that you could lose all of the money you invested

Annual Report

A corporation sends an investor a copy of "this" once a year, showing the values/worth of the investments made

Cyclical Stocks

Stocks that vary with economic change

Growth

Corporations that reinvest their profits into the business so it can expand are known as...

Market Value

The current value of what you'd expect to pay for shares of stock, bonds, or mutual funds

Limited

A warranty that reads, "Parts only; the customer must pay labor costs," is an example of what kind of warranty?

Warranty

An assurance of product quality or dealer responsibility

Deficit

When expenses exceed income, a budget can be said to be in...

Budget

A plan that compares revenue to expenses

Assets

Everything you own that is worth money

Cancelled

A check that has been processed by the bank

Outstanding

A check that is written but not taken out of an individual's account by the bank

Daily

You will receive the greatest gain of principle if interest is compounded..

Liquidity

The quality of easily being converted to cash

Blank Endorsement

The most common form of signing the back of a check you receive, whether it be personal or paycheck, so that you can deposit it is called...

Interest

The cost of borrowing someone else's money

Cleared Check

A check that has been written by you and has been cashed by the other party is called a...

Check Register

Reconciling your bank account is comparing your bank statement to your...

$50

Credit card holders may be held liable for...

Character, Capacity, Collateral

The important C's of credit are...

Cosigner

One who agrees to pay a note if the borrower does not pay is called...

Creditor

One who lends money for the use of goods and services for payment at a later date

Annual Fee

If you pay your credit card balance in full every month, the most important feature of a credit card would probably be...

Credit Union

Best source for a low-cost car loan

Insolvent

If your liabilities are greater than your assets you are...

Fair Credit Reporting act

The act that provides that you may see your credit file at no charge within 30 days of a credit denial

APR

The cost of credit expressed as a yearly percentage

Credit Report

A written statement of a consumer's credit history issued by a credit bureau is referred to as a...

Truth-In-Lending Act

To inform the consumer about the total cost of using credit

Involuntary

When a creditor asks the court to declare a debtor bankrupt

Credit Bureau

Trans Union, Experian, and Equifax are all examples of

Depreciation

Loss of value in a vehicle

Life

Insurance that protects against loss from death

Premium

Your regular monthly insurance payment

Liability

Auto insurance required by law

Term

Least expensive life insurance

April 15th

The last date for income tax filing

Social Security

Retirement, disability, are survivor benefits provided by...

Net Pay

The amount of take-home pay

W-4

The IRS Form used to claim allowances for purposes of withholding taxes

January 31st

Employers must send a Wage and Tax Statements to all employees who worked for them in the past year by...

Strike

When employers and union officials cannot agree to terms of a new contract, the result is often a....

Excise

A tax on a specific products and services

Property

Taxes you pay when you own a home

Sales

Taxes you pay when you purchase clothes

Income

Taxes you pay out of your paycheck

1099

The statement you receive from the bank stating the amount of interest earned

W-2

This form is essential in completing your 1040EZ; it tells you what your net and gross pay is for the year

Dependent

Someone who lives with you, and then gets half of his/her income