Consumer Economics Chapter 2

Bias

A preference that might prevent impartial judgement

Impulse Purchase

A purchase made on a whim, without planning

Resources

Anything that is useful or helpful in the process of achieving goals or solving problems.

Critical thinking

Applying reasoning strategies in order to make sound decisions

Scarcity

Because of limited resources, an economic system can't possibly produce all of the goods and services that people want

7 sources of consumer information

Consumer Protection agencies and organizations, professional advisors, media sources, advertising, salespeople, package information, and other consumers.

Standards

Established levels of quality or quantity to measure against

Bartering

Exchanging goods or services with another person, making it possible to satisfy needs and wants without spending money

List 4 ways to use resources effectively

Expand resources, conserve resources, substitute resources, exchange resources

Opportunity Cost

Giving up wants in order to fulfill others. What you give up when you decide to use resources one way rather than another

List the six types of resources

Human resources, time, financial resources, material and technological resources, community resources, natural resources

Steps in the decision making process

Identify the decision, identify resources and collect information, identify the options, weigh the options, choose the best option, take action, evaluate the decision

Fads

Interests, products, or styles that people take up with exaggerated enthusiasm for a brief time

Credentials

Licenses, certifications, or degrees that indicate knowledge or expertise in a certain subject area.

9 factors that affect consumer decisions

Personal factors, family factors, culture, social factors, societal and demographic factors, economic factors, technology, media, the marketplace, and legal and moral factors

4 steps in the management process

Planning, organizing, implementing, or carrying out the plan, evaluating

Status Symbol

Possessions or activities by which social or economic prestige is measured

Conspicuous Consumption

Purchasing goods or services to impress others

Four strategies for helping you reach your goals

Set goals with care, prepare to deal with difficulties, enlist the support of others, acknowledge your successes and failures

Long term Goal

Something that you want to accomplish in a larger period of time, like graduating from college.

Short term goal

Something that you want to accomplish within a short period of time, such as saving up for a new bicycle.

8 time managing strategies

Stay focused, Identify time wasters, get organized, plan ahead, make to-do lists, take action, make use of free time, value other people's time

Values

Strongly held beliefs and principles about what is worthwhile. Some common ones include honesty, respect, kindness, courtesy, and fairness

wants

THings you desire but that are not necessary to live

Goals

Targets that you want to accomplish. They help you focus on the things you want to achieve and take the necessary steps to make them a reality.

Management

The process of using resources effectively to reach goals

Family Life Cycle

The series of stages through which a family passes. The stages involve people, not items.

Needs

Things that you must have in order to live

6 questions to ask your self about the reliability of information

What is the source of the information? What authority or expertise does the source have? Is the source Biased? Is the information fact or opinion? How can I confirm the information? Is it suspicious?

Priorities

Your judgements about the relative importance of alternatives. What's most important to you

procrastinate

to put off taking action until the last minute