Consumer Economics Flashcards
6 cards from real NEDP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Consumer Economics flashcards as text
What is 'supply and demand' and how does it affect price?
Answer: When supply decreases or demand increases, prices generally rise; when supply increases or demand decreases, prices generally fall.
Price is determined by the relationship between how much of a product is available (supply) and how much consumers want (demand).
What does the term 'APR' mean on a loan or credit card?
Answer: Annual Percentage Rate — the yearly cost of borrowing expressed as a percentage
APR (Annual Percentage Rate) represents the yearly interest cost of a loan, including fees, expressed as a percentage.
What is 'comparison shopping' and why is it a smart consumer practice?
Answer: Checking multiple stores or sources for the best price and value before buying
Comparison shopping helps consumers find the best value — not always the lowest price, but the best combination of price, quality, and features.
What does the FTC (Federal Trade Commission) do to protect consumers?
Answer: It enforces consumer protection laws, prevents deceptive advertising, and investigates fraud.
The FTC protects consumers from deceptive business practices, false advertising, identity theft, and anticompetitive behavior.
What is a 'warranty' on a consumer product?
Answer: A promise by the manufacturer or seller to repair or replace the product under certain conditions
A warranty is a guarantee that the product will perform as described for a specified period; defects are repaired or the product replaced.
When a product is advertised as being '50% off,' what does this mean?
Answer: The current selling price is half of the original listed price.
'50% off' means the original price has been halved — you pay half of what was originally charged.