Income and Expenses
Define scarcity in one sentence.
A short answer expected: explanation that resources are limited while wants are unlimited.
What does a producer do? What does a consumer do? (one sentence each)
Producer makes goods/services; consumer buys/uses them.
Name two common red flags of a scam.
Pressure to act now; vague details or strange links; promises that seem too good to be true.
Match the marketing technique to a short description — Emotional Appeal: what does it try to do?
Triggers feelings to persuade people to buy.
What is a budget? Give a simple one-sentence definition.
A plan showing income and expenses to manage money.
Give one clear example from everyday life that shows the difference between a need and a want.
Example expected: e.g., food (need) vs. video games (want) with a one-sentence justification.
What is consumer sovereignty? Give a short example (1–2 sentences).
Consumers’ choices influence what businesses produce; example: many people buying eco-friendly bottles leads businesses to produce more.
What does the S.T.O.P. strategy help you do? Give the meaning of at least two letters.
Helps stay safe from scams. Example: S = Stop, T = Think (answers may vary by class notes).
What is the Bandwagon Effect in advertising? (one sentence)
Encourages people to buy because "everyone else is doing it."
Identify whether each example is a fixed or variable expense: monthly phone plan, weekly snacks.
Phone plan = fixed; snacks = variable.
What is opportunity cost? Describe it using a simple decision
Explanation expected: what is given up when choosing one option over another, plus a short example (e.g., choosing to buy lunch vs. saving money for a book).
If demand for sneakers suddenly increases but supply stays the same, what will likely happen to the price? Explain in one sentence.
Price likely rises because higher demand with limited supply pushes prices up.
What makes an advertisement deceptive? Give two tactics advertisers might use.
Misleading claims, hidden fees, exaggerated benefits, or false testimonials.
Give a short classroom example of a testimonial and explain why it might persuade consumers.
Student example: a celebrity or peer praises a product; it persuades because of trust or admiration.
A simple budget table shows income $30 and total expenses $22. What is the balance? (show how you find it)
Expect students to subtract: $30−$22=$8$30−$22=$8
Explain the difference between fixed expenses and variable expenses and give one example of each.
Fixed expense example: rent, subscription; Variable expense example: snacks, electricity (varies).
Describe a situation where limited supply causes a problem for consumers and explain one possible business response.
Example: shortage of a toy before holidays; businesses may raise price, limit purchases, or increase production.
Explain the difference between "change of mind" returns and returns for a faulty product (ACL consumer rights) in one short paragraph.
Expectation: change of mind is usually a seller policy, not legally required; faulty product requires repair/replacement/refund under consumer law.
Explain "glittering generalities" and "plain folks appeal" and give one example of each
Glittering generalities: vague positive words (e.g., "best ever"); Plain folks: shows ordinary people using product to seem relatable.
Explain in 2–3 sentences why budgeting can improve wellbeing and decision-making.
Expectation: budgeting reduces stress, helps reach goals, and supports better spending choices.
student has limited pocket money. They can either buy concert tickets or save for new shoes. Using opportunity cost and scarcity, explain the choice and the trade-offs.
Expectation: mention scarcity forces a choice, name the opportunity cost (what they give up), and discuss wellbeing/priority.
Using supply and demand, explain how both forces work together to set prices in a market. Include a short example.
Expectation: describe demand and supply interaction, equilibrium idea, example (e.g., fruit harvest low supply → higher prices)
A customer bought a phone that stops working after one week. Explain what the business legally must do under consumer rights and what ethical responsibilities the business might also choose to take
Expectation: mention legal obligations (repair/replacement/refund), and ethical actions like extra customer support or apology.
Choose any two marketing techniques from the list and write a short explanation of how a company might combine them in a single ad campaign.
Expectation: describe combination (e.g., emotional appeal + testimonial) and how they work together to influence buyers.
Given a short scenario (teacher to supply in-class): a teenager has $50, fixed expenses $20, variable expenses planned $25, but unexpected bus fare $5 occurs. Ask students to calculate final balance and suggest one budgeting change to avoid problems next month.
Calculation: $50−($20+$25+$5)=$50−($20+$25+$5)=$0. Suggestion: set aside emergency funds or reduce variable spending.