FCS 103 1st EditionExam #2 Study Guide Lectures: 5-8Lecture 5 (February 10)—Protection for the Consumer1. What aspects of life were the oldest consumer protection rules focused on? a. Marketplace regulation (Meat, scales, etc.)2. What decades were the greatest numbers of consumer protection laws passed?a. 80’s3. What was Sherman Antitrust Act passed to prevent– is it still in force today?a. Prevent business monopolies—yes, it is still in force today.4. What 1960’s individual led the consumer protection movement with his attack on auto safety?a. Ralph Nader 5. What does “caveat emptor’ mean?a. “Let the buyer beware!”6. What are the 4 Kennedy “rights of consumers?”a. Right to: Safety, Choose, Be informed, Be heard7. What did Reagan administration do to consumer protection issues?a. Shift to less regulation—give businesses more of a free hand8. What are the 3 FTC bureaus and what do they do?a. Consumer protection: Cease and desist order, finesb. Competition: antitrust lawsc. Economics: generally “studies” regulations, consumers, economy 9. What state government position is the highest level of consumer protection?a. Lisa Madigan-attorney general 10. What court would landlord-tenant issues likely be first utilized?a. Small claims court11. What is a class action suit?a. Group is assembled, all similarly wronged, file suit12. Identify who is a plaintiff, defendant or litigant in a situation provided – several questionsa. Plaintiff: person who files the complaintb. Defendant: person complained againstc. Litigant: the two parties (plaintiff and defendant) involved in a court process13. What is Consumer Report magazine about?a. A private entity that offers product testing14. What is a full warranty – how does it differ from a limited warranty?a. Full warranties are available if it meets all federal warranty standardsb. Limited warranties are not complete to federal standards—must specify what is different15. Be able to identify implied warranties from sample situations – several questions16. When was CPSC and when was it begun?a. Consumer Product Safety Commission-1972Lecture 6 (February 17)—The Consumer as a Wage Earner 17. Be able to recognize examples of Psychic (job satisfaction) Income?a. The satisfaction derived from a work situation or occupation—non monetary rewards from doing a particular jobi. Helping others, making a difference in your community, enjoying what you do, where you get to live18. What were the statistics presented for women in the workplace – 1960 and current?a. 1950: “Women’s place is in the home”b. Since 1960: Female work force has more than doubledc. Current: 3 out of 4 women hold jobs19. What is definition for inflation?a. Sustained rise in the weighted average of all prices20. How many items are tracked to measure inflation?a. 40021. How often is inflation measured?a. Monthly22. What is CPI and how does it work?a. Consumer Price Index: a price index based on a representative market basket of 400 products (goods and services)23. Understand what “real” price means versus money pricea. Real: dollar values that have been adjusted for inflationb. Money price: what you pay at the store24. Why are some critical about the use of CPI comparisons from many years ago versus today?a. Some products were not available when the CPI began25. Besides price, what does CPI factor into their figures?a. How often an item is purchased26. What government unit tracks inflation and earnings statistics?a. Bureau of Labor Statistics27. Be able to match the workplace protection law to the appropriate category – several questionsa. Discrimination: civil rights, age, pregnancyb. Health and Safety: OSHA, Labor relationsc. Hours and wages: Fair labor standards, equal pay, age discrimination, consumer creditd. Termination: Social security, Health insurance portability, COBRA, unemploymente. Unions-labor relations, whistle blowing, military leavef. Other: credit reports, employing minors, veterans rights 28. What are examples of barter income and social incomea. Barter income: trading lawn mowing for vacation pet care, share children’s hand-me-downs, etc.b. Social income: Parks, libraries, recreation, school, fire, police, etc.29. What are some of the common “fringe benefits” offered to employees?a. Health insurance, vacation pay, sick leave, life insurance, dental, etc.30. What education level/experience level would be most likely to earn the most, based on data presented?a. Bachelors degree (Male: $72,540) (Female: $54,236)Lecture 7 (February 19)—Creating a Living Budget 31. What percent of Americans earn less than $25,000? 50,000?? What percent earn > $100,000a. Less than $25,000: 17.8%b. Less than $50,000: 23.8%c. More than $100,000: 25.6%32. Understand what the $20,000 difference between mean and median American income signify?a. We have a lot of wealthy people that bring up the mean33. Why do we call it a “living” budget?a. It’s always changing, coming and going, etc. 34. What is a breadwinner?a. The person with the bigger income in the family—the person who “puts the bread on the table” 35. What are examples of budget issues that could cause a “correction” during a month?a. Car breakdowns, appliance breakdowns, etc. 36. What percent of a family ($50,000 expenses) spend on housing? Food?Transportation?a. Housing: 34.4%b. Food: 13%c. Transportation: 15.6%37. As income goes up, we generally see food cost percentages _____ and housing shift to _______a. Food percentages drop, housing rises and may shift to “Luxury” good38. Be able to recognize flexible and fixed expense itemsa. Flexible: Can be changed in the short run (I.e.: Clothes, food, entertainment, etc.)b. Fixed: Expenses that occur at specific times and cannot be altered (I.e.: Leased or purchased homes, utilities, car payments, child support, etc.)39. What percent of income do Food, clothing, transportation, insurance, and housing add up to?a. 77.7%40. Who should assist in deciding a spending plan for a family household?a. Everyone41. Sometimes a family c_______ helps to get all members to cooperate (not counselor!!!!!)a. Council (meeting)42. Besides income, what also is a major force in deciding a budget for a family?a. Family values43. What is a luxury good?a. Housing, jewelry, gourmet food, expensive cars, etc.44. An expense than can be easily altered is a ______ expense and if it cannot it is ___________.a. Flexible; fixedLecture 8