Chapter Assessment - Financial Literacy - أول ثانوي

وزارة التعليم 20 Financial Literacy Chapter 2 Assessment SUMMARY 2.1 ⚫ Needs are things required for survival, such as food, water, clothing, shelter, and medical care. Wants are the things we desire for reasons beyond survival and basic comfort. ⚫ Limited financial resources limit our ability to satisfy all needs and wants, which are unlimited and grow with time. 2.2. Consumer behaviors include emotional buying, impulse buying. and rational buying. • Rational buying strategies include economizing and optimizing. When used wisely, these strategies help keep prices low. • Emotional and impulse buying, as well as optimizing, can contribute to overspending. 2.3. To maximize their purchasing power, consumers should use buying strategies before, during, and after shopping. ⚫ Comparison shopping helps to determine product prices, features, and special offers ⚫ Buying should be reviewed to help develop future buying strategies. 2.4. Being a responsible shopper requires financial responsibility, which involves planning your earning, spending, and saving to meet finan cial goals. Financial irresponsibility will result in the inability to sus- tain your lifestyle. ⚫ Designing a buying plan involves defining your spending goal, choosing the item to buy, defining criteria, setting a timeline, and setting a spending limit. ⚫ Implementing a buying plan involves comparison shopping, choos ing among payment methods, making the purchase, and evaluating the purchase so you can make better choices in the future.

KEY TERMS For each lesson, match the terms listed with their definitions. Write the letters of the correct definitions. Lesson 2.1 Term Your choice Definition 1 Dispable Income 2 Financial resources 3 Need a refers to what people desire for reasons beyond survival and basic needs b. The income available to spend after basic needs have been paid for ċ money or of a tam of value that are used to acquire gonds and services d things you must have for wirvival 4 Wants Lesson 2.2 Term 1 Consumer 2 Lconomizing 3 Temotional burner 4 Impulse buying 5 Market ecunamy 6 Optimcing 7 Overspending 8 Rational buying Your choice Definition a purchasing something as a resull of a sudden deasion. without any plane to do so beforehand b production and prices are determined by competition bel Ween privately owned businesses The amount of money a product is worth ar Its usefulness d the process of selecting goods and services based on needs wants, and logical choices e spending more than the allocated amount f the process of purchasing products based on desire rallier than logic g a person who buys goods or services for personal use h saving as much as possibble and spending money only when necessary i getting the highest value for the money spent 9 Value Lesson 2.3 Term 1 Bankrupt 2 Comparison shopping 3 Unit price Your choice Definition a The cost of an individual item when sold as a multipack b a person or organization declared by law as unable to pay then dels c checking prices, brands, and quality among several sellers to make sure you are getting the best deal وزارة التعليم 27-1485 CHAPTER 2 Assessment 71

Lesson 2.4 Term 1 Buying plan 2. Criteria 3. Financial resparubility 4 Financial responsibility 5 Opportunity cost 6 Spending limit 7 Systematic decision making Your choice Definition a the process of making cholas that reflect goals by considering all of the pros and cons along with the costs b failing to live up to your financial obligation to meet your goals and needs the maximum amount you are willing to pay for an item d the value or benefit given up when a choice is made berween two or more options e standards or rules by which something can be judged f being able to meet your financial goals through planned earning, pending, and saving g an organized method for making good buying decisions وزارة التعليم 72 Financial Literacy PROBLEMS 1. How are wants different from needs? What are some wants that you have? 2. How do financial resources limit a person's spending choices?

3. What Is disposable income? How does it affect your spending? 4. What is meant by rational buying? 5. Explain why emotional and Impulse buying often lead to buyer's remorse. 6. What is economizing? How does this buying strategy affect con sumer demand and prices in a market economy? 7. List things you can do while shopping to make better purchase decisions. وزارة التعليم 427-1989 CHAPTER 2 Assessment 73

وزارة التعليم 74 Financial Literacy 8. Explain the importance of keeping receipts after you buy a product. 9. Discuss things you can do after a purchase to help ensure a better shopping experience now and in the future. 10. How is systematic decision making related to being financially responsible? 11. What does it mean to say that a person is financially responsible? 12. What are the advantages of using a buying plan?

EXERCISES Choose the correct answer. 1. Which of the following is an example of emotional buying? a. someone seeing a snack at the checkout of the grocery store and buying it b. someone purchasing a pair of shoes as they have outgrown theirs c. someone purchasing a surprise vacation for their family d. someone going to the local mall because they are bored and making a few purchases 2. Which of the following is NOT an example of irresponsible spending? a. a consumer upgrading their smartphone because the new model is a nicer color b. a consumer spending a large amount of money on their family's weekly groceries c. a consumer buying their child an expensive toy because all the child's friends have one d. a consumer spending so much money on wants that they don't have enough left to pay for their needs 3. People with limited financial resources have lots of choices. a. true b. false 4. A market economy plays a vital role in setting prices. a. true b. false 5. Which of the following is an accurate description of a motive for emotional buying? a. pride b. durability c. economy d. quantity 6. Optimization occurs when: a. consumers purchase in small quantities b. products are bought when on sale c. products are used immediately low-quality products are purchased 427-1989 CHAPTER 2 Assessment 75

وزارة النص البحر 76 Financial Literacy 7. Comparison shopping helps make the most of the shopping experience a. true b. false 8. When planning your purchase, you must: a. have no idea of what you want b. have no budget c. think about how to pay for the item d. forget your shopping list. 9. Clearance sales are when goods are offered at a reduced price for a short period of time. a. true b. false 10. Which of the following is NOT an important step when creating a buying plan? a. define the spending goal b. choose the item to buy c. have no timeline d. define the criteria 11. A spending limit sets the minimum amount you are willing to pay for an item. a. true b. false 12. Which of the following is NOT correct? When making a purchase you should: a. check the condition of the item b. make sure to keep the receipt for the guarantee c. not find out about exchange or return policies d. check delivery costs

MINI CASE Yasser's Vehicle Leasing Business Yasser has expanded his vehicle leasing business into Riyadh and Abdullah, the new manager in Riyadh, has five businesses interested in using Yasser's service. Abdullah now needs to decide which vehicles will be available to be leased to customers. Yasser has asked Abdullah to create a buying plan, recommending which vehicles will be suitable for business customers in Riyadh. 1. Should Abdullah choose cars that meet customer needs or wants? Explain your reason. 2. Abdullah needs to create a buying strategy. Explain whether he should use an economizing or optimizing rational buying strategy. Abdullah has decided what buying strategy he is going to use. He now needs to select cars that will be appropriate for his customers in Riyadh. Adbullah has decided to do a comparison shop of other local vehicle leasing businesses. 3. What factors will be important to consider when doing the com- parison shop? وزارة التعليم 407-1985 CHAPTER 2 Assessment 77