FHCE 3100E Final Exam ACTUAL UPDATED QUESTIONS AND CORRECT
ANSWERS
Economics The study or science of production, distribution, and consumption
The study of how society manages its scarce resources
Society and Scarce Resources The management of society's resources is important because resources are
scarce
Scarcity implies choice and choice implies cost
Scarcity Means that society has limited resources and therefore cannot produce all the
goods and services people wish to have
Why study consumer economics? To apply course knowledge to personal decisions
To overcome passivity - to understand and "own" your place in the economy
To become a Consumer Protection Advocate
- Standing up for consumer rights
- One person can make a difference
-- Ralph nader, clark Howard, you
Ralph Nader He suggests that Amazon is at a point where it should be issuing dividends back
to its shareholders since its wealth/value has increased substantially over the past
few years
Clark Howard
Consumers Individuals and groups who obtain, use, maintain, and dispose of goods and
services to fulfill needs and increase satisfaction
, Goods Tangible Objects
Services Intangible actions or work done
Satisfaction Also known as "utility"
Consumers... Obtain, use, maintain, and dispose of...
- obtain ...
- use ....
- maintain ...
- dispose of ...
The Road to Consumer Economics Adam Smith (1776): Author of "An Inquiry into the Nature and Causes of the Wealth
of Nations stated that: "Consumers act in their own self interest and markets work
with the invisible hand"
- The founder of modern economics
- Felt consumers should be given the freedom and authority to run their own
economic affairs
- The US's founding fathers liked the idea that wealth should be based on goods
and service slouched and consumed by consumers
Capitalisn A social system based on the recognition of individual rights
Under capitalism the state is separated from church/religion
Being able to freely choose among a vast array of commodities gives people a
sense of freedom
Consumerism The belied that goods give meaning to individuals and their roles in society
How much does this belief drive our consumption habits?
Do you buy goods because you care about what others think about your good?
Who only shops at name brand stores?
Who shops at Walmart?
Who shops at Goodwill?
Goods and Services Buying goods and services is an act of trust because we assume our purchases
will increase our satisfaction
Consumption may not always bring satisfaction
- unsatisfactory products
- injurious consumption
- consumer fraud
Goods and Services to meet Human Needs Needs: he barest minimum physical necessities that allow you to survive
Maslows Hierarchy of Needs
Wants What people would acquire if their resources were unlimited
ANSWERS
Economics The study or science of production, distribution, and consumption
The study of how society manages its scarce resources
Society and Scarce Resources The management of society's resources is important because resources are
scarce
Scarcity implies choice and choice implies cost
Scarcity Means that society has limited resources and therefore cannot produce all the
goods and services people wish to have
Why study consumer economics? To apply course knowledge to personal decisions
To overcome passivity - to understand and "own" your place in the economy
To become a Consumer Protection Advocate
- Standing up for consumer rights
- One person can make a difference
-- Ralph nader, clark Howard, you
Ralph Nader He suggests that Amazon is at a point where it should be issuing dividends back
to its shareholders since its wealth/value has increased substantially over the past
few years
Clark Howard
Consumers Individuals and groups who obtain, use, maintain, and dispose of goods and
services to fulfill needs and increase satisfaction
, Goods Tangible Objects
Services Intangible actions or work done
Satisfaction Also known as "utility"
Consumers... Obtain, use, maintain, and dispose of...
- obtain ...
- use ....
- maintain ...
- dispose of ...
The Road to Consumer Economics Adam Smith (1776): Author of "An Inquiry into the Nature and Causes of the Wealth
of Nations stated that: "Consumers act in their own self interest and markets work
with the invisible hand"
- The founder of modern economics
- Felt consumers should be given the freedom and authority to run their own
economic affairs
- The US's founding fathers liked the idea that wealth should be based on goods
and service slouched and consumed by consumers
Capitalisn A social system based on the recognition of individual rights
Under capitalism the state is separated from church/religion
Being able to freely choose among a vast array of commodities gives people a
sense of freedom
Consumerism The belied that goods give meaning to individuals and their roles in society
How much does this belief drive our consumption habits?
Do you buy goods because you care about what others think about your good?
Who only shops at name brand stores?
Who shops at Walmart?
Who shops at Goodwill?
Goods and Services Buying goods and services is an act of trust because we assume our purchases
will increase our satisfaction
Consumption may not always bring satisfaction
- unsatisfactory products
- injurious consumption
- consumer fraud
Goods and Services to meet Human Needs Needs: he barest minimum physical necessities that allow you to survive
Maslows Hierarchy of Needs
Wants What people would acquire if their resources were unlimited
