ECONOMICS
CONSUMER
Examination 5
based on Chapters 15, 16, 17 and 18 in your textbook and pages 57-62 in your study guide.
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For each of the following, circle T if the statement is true; F if it is false.
T F The first reported advertising was in 1937 when newspapers started publishing
printed ads.
T F All advertising is designed to convince consumers to spend money.
T F Liquidation sales are used to help a store reduce seasonal merchandise.
T F Items marked \"as is\" can be returned for refunds.
T F It is illegal for retailers to sell an item above the manufacturer's suggested retail
price.
T F Sweepstakes that require an application fee or purchase to enter are usually
fraudulent.
T F Legally, telemarketers may only call consumers during certain hours.
T F If you make an \"in-home\" purchase over $25, the Cooling-Off Rule gives you 24
hours to cancel the order.
T F Outlet stores sell items in bulk quantities at significant savings.
T F An escrow service provides extra security for those who sell goods via an internet
auction.
T F John bought a new wristwatch that the salesperson guaranteed him to be
waterproof. When John went scuba diving, the watch filled with water and was
ruined. The store where John bought the watch is required to refund John his
money.
T F The Magnuson-Moss Warranty Act requires manufacturers to include written
warranties with all products.
T F With full warranties there is no cost to the consumer for warranty service.
T F For products costing over $15, sellers must make any written warranties available
to consumers before purchase.
(Over)
