Economics Chapter 3

What is a brand name?

A word, picture, or logo on a product that helps consumers distinguish it from similar products

What is a consumer?

Any person or group that buys or uses goods and services to satisfy personal needs and wants.

What ability to consume depends on what?

Available income and if you choose to spend.

What are consumer responsibilities?

Buy from a reputable, trustworthy source Read the fine print Never enter your personal + financial info into a link Report problem ASAP Keep receipts

What are capitalism and socialism?

Capitalism = market economy = free enterprise Socialism = command economy Socialism = little private property

What is a rational choice?

Choosing the alternative that has the greatest value from among comparable-quality products

What are the two types of advertising?

Competitive ads - advertising that attempts to persuade consumers that a product is different from and better to any other. Informative ads - advertising that benefits consumers by providing useful info about a product

What are the two types of income?

Disposable and discretionary

What things can make differences in a person's earning power and consumption?

Education, occupation, experience, location, and health.

What are the economic goals of Americans?

Freedom - to allow each member of society to make choices Economic efficiency - Wise use of resources Economic equity - Economic system should be fair and just (opportunities, not income) Economic Security - Want protection against risks beyond our control Economic stability - Attempt to reduce extreme ups and downs in the standard of living Economic growth - increased production of goods and services over time

What is comparison shopping?

Getting info on the types/Prices of products available from different stores and companies.

What is a generic product?

It has a general name for a product + it is difficult to know who manufactured the product

What is discretionary income?

Money income a person has left to spend on extras after necessities have been bought.

What are consumer rights?

1. The right to safety 2. The right to be informed 3. The right to choose 4. The right to be heard 5. The right to redress

What is a warranty?

A promise made by a manufacturer/seller to repair or purchase a product within a certain time period if it is found to be faulty

What are our rights and responsibilities?

1) Know your rights 2) Be respectful 3) Be knowledgeable 4) Vote

When shopping, you should...

1. Obtain only as much information as is worthwhile 2. Ask salespeople for accurate information 3. Use a search engine on in the internet, and visit various sites in order to compare different information 4. Read reviews other people have written about different brands and models of the product.

What is consumerism?

A movement to educate buyers of goods

What is ethical behavior?

Acting in accordance with moral convictions about right and wrong.

What is bait and switch?

Ad that attracts consumers with a low-prices product, then tries to sell them a higher-priced product

What two resources are involved in making a purchase?

Income and time

What is disposable income?

Income remaining for a person to spend or save after all taxes have been paid.

What are some comparison shopping tips?

Read ads Make phone calls Browse the web Visit different stores Talk with others