FINA 2330 Final Exam | Questions and Answers

FINA 2330 Final Exam | Questions and Answers The popular book, The Millionaire Next Door, details the extravagant lives of the wealthiest people in various communities throughout the United States. False Schor states that "many of us are continually comparing our own lifestyle and possessions to a select group of people we respect and want to be like." She calls this... Competitive Acquisition According to Schor, a/an __________ __________, is a group with which a person is more likely to compare themselves and their lifestyle. Reference Group Adam Smith was the author of which book? The Wealth of Nations Schor says that daily exposure to an economically diverse set of people is one reason why Americans began engaging in more upward comparison. True Schor observed that a large majority of Americans are conscious of being motivated by social status and intentionally make purchases that are knowingly meant to elevate that status. False According to Schor, very few economists have found that consumer satisfaction, and dissatisfaction, actually depend less on what a person has in an absolute sense than on socially formed aspirations and expectations. False __________ is what Schor calls the process of reducing work hours, thereby earning and spending less, with the goal of leaving behind the pressures for upscale consumption. Downshifting According to Schor, the ______ were the so-called "decade of greed." 1980's According to Schor, the most obvious social trend of the 1970's that was altering the nature of comparative consumption was: an increase in married women entering the work force According to Schor, Bourdieu argues that tastes and preferences don't just evolve out of individual likes and dislikes but are instead more likely to be socially produced by: inequalities in class. Bourdieu defines habitus as: All of these are correct According to Schor, a study by Russell Belk in the 1980's found that observers could predict reasonably well a person's family income and occupation by investigating the contents of his or her: purse or wallet. According to Schor, in modern society, not having money can result in a profound: social disability. Schor highlights that many Homeowner's Associations ban things like campers in the driveway, clothes lines (for hanging laundry outside to dry,) loud noise and rabbit hutches because: these things "reek of the lower classes." According to Schor's colleague Tracy Tefertiller, there was a high degree of consensus middle class teenage boys about which athletic shoes were in and out. True Schor states that Belk and his colleagues found that children in grade 5 or less (age 11 or so) are not persuaded by the images of symbolic consumption because the ability to discern certain symbols of social class does not begin to develop until middle school. False According to Schor, researchers have not definitively found that what you wear, drive and own affects how people treat you. False In contrast to what he originally assumed, Bourdieu found almost no regularities in French consumer patterns within specific economic classes. False Schor states that traditionally consumer desires have been prompted by exposure to a reference group. True Schor conducted a study of women's lipstick preferences. In her study she found that there was ______ variety in the price of lipstick. a wide In the lipstick study, Schor found that there was ______ variety in the quality of lipstick, when blind-tested. No Schor highlights a study by Gollwitzer and Wicklund that found that business majors with lower grades and poorer job prospects were _______________ to buy expensive briefcases, pens and wristwatches. more likely According to Schor, when asked how important a brand name was for visible items such as sneakers, teenagers said that it was _______ important than the name on items such as shampoo or stationery. two to three times as Childers and Rao found that "peer group influence" is ___________ for visibly consumed than for those consumed in private. always higher Schor conducted a study on facial cleansers and the results were basically identical to the lipstick study. False Schor found that people with higher education levels actually did less status purchasing, which she argued highlighted the importance of a college education in overcoming the trappings of consumerism. False Schor admits that her lipstick study does not explain whether consumers desire social status or are simply trying to avoid humiliation. True Schor conceded that most nearly all more expensive brand names are of a higher quality than the lower priced options and therefore purchasing the more expensive brands is prudent if your income can support the purchase. False In one survey highlighted by Schor, nearly three fourths of the respondents agreed that their car was "not at all" a reflection of themselves. False Although Schor conceded that ads and the media impact consumer society, she argues that a more powerful stimulator is ______________. what friends and family have When paying a restaurant or bar tab, credit card tips tend to be ___________ than tips left with cash payments. Higher In Schor's "Telecom" survey, which group was most likely to be the most important reference group? Friends Schor found that the amount an individual saved ______ as the individual moved _____ from much better off than the reference group to not as well off, ______ the individual's actual income. decreased, down, regardless of According to Schor, inner desires are prompted first and foremost by exposure. This exposure can come from which of the following? All of these are correct. A study by Susan Fournier and Michael Guiry showed that over 60% of survey respondents always have something in mind that they look forward to buying. True Schor also found that television watching (similar to the impact of social media today) had no discernible effect on saving. False For many, the fantasy of consumption is not complete without the fantasy of showing the purchase to admiring others. True Surprisingly, Schor found that most people are aware of where their money goes but are unwilling to change their spending habits for fear of losing credibility with their friends. False Luckily for society, what people look forward to acquiring most are idealistic wishes and not materialistic wishes as one would assume. False When the men first approached Arkad, the basic advice he gave them was that "a part of all you earn is yours to keep." True "Earn as much as you can, save as much as you can, give as much as you can" was one of the Five Laws of Gold. False In the section of the book called "The Luckiest Man in Babylon," Megiddo's advice to the young Sharru was to: make work his best friend. Which of the following is not one of the "Cures for a Lean Purse?" All of the these were listed as a cure for a lean purse. The book summarizes the concept of luck by saying "Men of Action Are Favored by the Goddess of Good Luck." True The author of the book was: George S. Clason The book featured how many cures for a lean purse? 7 The majority of the book was originally published after World War II. False According to one of the wise men in the book, it is a good idea to take some of the money you earn on an investment and reward yourself in some way. False The Gold Lender of Babylon's philosophy was basically "No Pain, No Gain" when analyzing investments. False The Rule of 72 allows you to predict the number of years it will take to double your money. True The Federal Deposit Insurance Corporation, FDIC, insures most deposits in financial institutions such as banks for up to ____________. $250,000 In the United States, the history of income taxation can be traced back to Declaration of Independence. False According to Edelman, the cost of raising a child through age 18 typically totals to be between $35,000 and $45,000. False If a company needs to raise money, it needs to offer some form a return to the investor or lender, likely in the form of: interest payments or ownership.