TYPES OF GOODS & SERVICES
What is the difference between a good and a service?
Goods are physical items (e.g., phone); services are actions done for you (e.g., haircut).
What is comparison shopping?
Checking different sellers for prices, features, and quality before buying.
Name one advantage of using cash.
Helps you avoid overspending; no interest or fees.
What is a scam?
A dishonest scheme to trick someone out of money or personal info.
What is a budget?
A plan for how you spend and save your money.
What does it mean to be a responsible consumer?
Making informed choices, paying fairly, avoiding waste.
What is a durable good? Give an example.
A durable good lasts a long time; e.g., a fridge or car.
Name two things to consider before making a purchase.
Price, quality, warranty, return policy, or necessity.
What is a debit card and how does it work?
A debit card draws money directly from your bank account.
Name one type of scam that targets consumers.
Phishing, fake websites, investment scams.
Why is saving important?
Prepares you for emergencies and future expenses or goals.
Name one way consumers can reduce their environmental impact.
Buying reusable products, supporting eco-friendly brands, recycling.
What is a non-durable good?
A non-durable good is used quickly and replaced often; e.g., food.
What is impulse buying?
Buying something without planning or thinking it through.
What is the difference between credit and debit?
Debit uses your own money; credit borrows money to be repaid later.
What is a cooling-off period?
A short time (usually 10 days) to cancel some agreements.
What is the difference between fixed and variable expenses?
Fixed = regular, same amount (e.g., rent); variable = changes (e.g., food).
What is ethical consumerism?
Choosing products based on how they affect people, animals, and the environment.
Is a haircut a good or a service? Explain why.
A haircut is a service – it’s something done for you, not a physical item.
Why is it important to read the fine print in contracts or deals?
It may include extra charges, conditions, or responsibilities.
What is Afterpay, and what is one risk of using it?
Buy now, pay later in instalments. Risk: overspending or debt.
Name a government body that protects Australian consumers.
ACCC – Australian Competition and Consumer Commission.
Name one savings strategy and explain how it works.
EXAMPLE:
50/30/20 rule: 50% needs, 30% wants, 20% savings.
Why is it important to read product labels?
To check ingredients, origin, expiry date, or ethical certifications.
Explain the difference between needs and wants with examples.
Needs are essential (e.g., food, shelter); wants are extras (e.g., new sneakers).
Explain opportunity cost using a shopping example.
The value of what you give up when choosing something else. E.g., Buying a shirt means missing out on saving for a concert.
Name three payment methods and one benefit of each.
Cash – no fees; Debit – convenient and safe; Credit – flexible but risky.
What rights do consumers have if a product is faulty?
Refund, repair, or replacement under Australian Consumer Law.
Create a mini budget for a week with $100 income and at least 3 expenses.
Example: Income: $100; Expenses: Lunch $20, Phone $15, Entertainment $25; Savings: $40.
Give an example of a company or product that promotes ethical or sustainable practices.
Examples: Thankyou, Patagonia, The Body Shop – they support social or environmental causes.