Summary economics theme 3 + 4
The amount of young adults with debts has increased in the last few years.
3.A Spending your money
Consumption = The purchase of goods and services by people for private use.
People can buy goods and services
o Goods are tangible, there is often quite some time between the production and
consumption (clothes, food & a car)
o Services are intangible. You immediately use the service (hairdresser, education or going
to a concert
Goods and services can be divided into primary/normal goods & services and luxury goods &
services
Different types of expenditures
Another way of classifying expenditures is by looking at how often people buy them and the
predictability of the amount of money that you spend on it.
Sustainable consumption
Sustainable consumption = Consumer behaviour shaped by a concern towards the environment and
society
Circular economy = the idea of designing and producing goods in such a way that all materials can be
recovered and reused so it can serve as an input for a new production process
, Fair trade = the idea that production in developing countries should help farmers and workers in
developing countries to earn a fair income, so they can live from their work and they can invest in a
sustainable future.
Farmers often used to sell their crops to western companies for very low prices. With fair trade,
a fixed price is guaranteed for the farmers.
How our government can influence consumer behaviour
The government can promote better products for our planet by making them cheaper, and bad
products by making them more expensive.
Subsidy = a benefit given to companies or consumers to promote the consumption of goods that benefit
society.
Excise duty = A tax that is levied (geheven) to discourage the consumption of goods that are harmful to
society.
Subsidy = A financial benefit that stimulates the consumption of
goods that have a positive effect on society.
The government subsidies for example schools, sport clubs (for
children), but also electric cars.
3.B Budgeting
Creating a budget
Budget = Overview of all expected income and expenses in a certain period
Budget surplus = when total income exceeds total expenses (you have money left).
Budget deficit = When total expenses exceed total income (you are short of money).
Budgets are for certain time periods: One month does NOT equal 4 weeks.
Monthly budget Philippe
Income Expenses
From employment Amount Recurrent Amount
…. …. …. ….
From assets Daily/household
…. …. …. ….
Transfer Incidentals
…. …. …. ….
Total …. Total ….
Student’s budgets
The amount of young adults with debts has increased in the last few years.
3.A Spending your money
Consumption = The purchase of goods and services by people for private use.
People can buy goods and services
o Goods are tangible, there is often quite some time between the production and
consumption (clothes, food & a car)
o Services are intangible. You immediately use the service (hairdresser, education or going
to a concert
Goods and services can be divided into primary/normal goods & services and luxury goods &
services
Different types of expenditures
Another way of classifying expenditures is by looking at how often people buy them and the
predictability of the amount of money that you spend on it.
Sustainable consumption
Sustainable consumption = Consumer behaviour shaped by a concern towards the environment and
society
Circular economy = the idea of designing and producing goods in such a way that all materials can be
recovered and reused so it can serve as an input for a new production process
, Fair trade = the idea that production in developing countries should help farmers and workers in
developing countries to earn a fair income, so they can live from their work and they can invest in a
sustainable future.
Farmers often used to sell their crops to western companies for very low prices. With fair trade,
a fixed price is guaranteed for the farmers.
How our government can influence consumer behaviour
The government can promote better products for our planet by making them cheaper, and bad
products by making them more expensive.
Subsidy = a benefit given to companies or consumers to promote the consumption of goods that benefit
society.
Excise duty = A tax that is levied (geheven) to discourage the consumption of goods that are harmful to
society.
Subsidy = A financial benefit that stimulates the consumption of
goods that have a positive effect on society.
The government subsidies for example schools, sport clubs (for
children), but also electric cars.
3.B Budgeting
Creating a budget
Budget = Overview of all expected income and expenses in a certain period
Budget surplus = when total income exceeds total expenses (you have money left).
Budget deficit = When total expenses exceed total income (you are short of money).
Budgets are for certain time periods: One month does NOT equal 4 weeks.
Monthly budget Philippe
Income Expenses
From employment Amount Recurrent Amount
…. …. …. ….
From assets Daily/household
…. …. …. ….
Transfer Incidentals
…. …. …. ….
Total …. Total ….
Student’s budgets
