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 three payment methods and one benefit of each.
Cash – no fees; Debit – convenient and safe; Credit – flexible but risky.
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 is an example of hidden advertising in a supermarket?
Answers will vary.
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.
What is the significance of a credit score?
A credit score is a numerical representation of a person's creditworthiness, affecting their ability to obtain loans and the interest rates they may be offered.
How does advertising affect consumer behaviour?
Advertising can create brand awareness, influence perceptions of a product, and encourage impulse buying through emotional appeals.
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 should you do if you receive a suspicious email asking for personal information?
You should not respond or provide any information; instead, delete the email and report it to relevant authorities like Scamwatch.
What is the difference between fixed and variable expenses?
Fixed = regular, same amount (e.g., rent); variable = changes (e.g., food).
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.
Money received regularly from work, property, business or investment is called what?
Income
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.
Explain how 'lay-by' works.
Lay-by is a purchasing method where a customer reserves an item by paying a deposit and then makes regular instalments until the full price is paid. The retailer holds the item until all payments are complete, after which the customer collects it. If the customer cancels or fails to complete payments, terms regarding refunds or fees may apply.
What should a consumer do if they suspect they have encountered a scam?
If a consumer suspects a scam, they should cease communication with the scammer, avoid providing any personal information, and report it to the relevant authorities.
What does 'interest rate' mean in the context of loans?
The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount, which lenders charge for the use of their funds.