2.1
True or False: Distinguishing between values and wants is the first step in setting priorities.
False.
VOCAB: To put off taking action
Procrastination
True or False: Making a small impulse purchase once in a while is not a problem.
True
True or False: News reports about the results of scientific studies are generally very detailed.
False
A resource is anything that is useful or helpful in the process of achieving _______________ or solving problems.
goals
What is the first step in setting priorities?
Distinguishing between needs and wants, since needs must be met before wants.
Explain the problem of scarcity and how it results in opportunity cost.
Scarcity means that an economic system cannot produce all the goods and services desired. Consequently, consumers must decide to give up some items in favor of others, resulting in an opportunity cost.
VOCAB: Purchasing goods or services to impress others
Conspicuous Consumption
VOCAB: applying reasoning strategies in order to make sound decisions.
Critical Thinking
The problem of _________ exists because of limited resources.
scarcity
Standards
Describe two types of resources that are available to you as a consumer. (From the book)
Human resources, Time, Financial, Material and Technological, Community, Natural
VOCAB: interests, products, or styles that people take up with exaggerated enthusiasm for a brief time.
Fads
List 2 types of credentials legitimate experts may have have that indicates knowledge and experience in a certain subject area.
Licenses, Certifications, or Degrees
The process of using resources effectively is called ___________.
management
Describe two of the strategies from the book that can help you reach your goals.
-Set goals with care
-Prepare to deal with difficulties
-Enlist the support of others
-Acknowledge your successes and failures
List 3 strategies from the book that help you manage time and energy.
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
List 3 of the seven steps that can help you make informed, rational choices.
1) Identify the decision
2) Identify resources and collect information
3) Identify the options
4) Weigh the options
5) Choose the best option
6) Take action
7) Evaluate the decision
List three sources of consumer information.
Consumer protection agencies and organizations, professional advisors, media sources, package information, advertising, salespeople, and other consumers.
Exchanging goods or services with another person is called __________.
bartering
What are the four things people consider when determining their priorities?
Needs, wants, values, and standards
List the four-step management process.
1. Planning
2. Organizing
3. Implementing
4. Evaluating
Describe five types of factors that affect the choices you make.
Personal, Family, Culture, Social, Societal ad Demographic, Economic, Technology, the marketplace, Legal and moral factors.
What questions should you ask yourself to determine the reliability of information you find. (List 3 questions)
-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?
Economists define ___________________ as what you give up when you decide to use resources one wat rather than another.
opportunity cost