1. What’s your role?

2.  Profit Motive  Open Opportunity- everyone can compete in the market place  Legal Equality- everyone has the same legal rights  Private Property- right to own and make decision about your property  Freedom to buy and sell what they want

7. Gathering product information before making a purchase  Read reviews of different brands and models  Conduct research on the internet  Seek advice from family and friends  Visit stores to compare prices and quality  Look at brochures and catalogs

8. Rational Choice- the alternative that has the greatest perceived value  Involves choosing the best quality item that is the least expensive from comparable-quality products.  Involves the greatest perceived value  Each person’s value system for what he spends is different.  Example- Running shoes

9. ADVERTISING The goal of advertising is to win the customer dollar and advertisers are willing to spend millions of dollars to attract your attention.  Competitive advertising- attempts to persuade consumers that a product is different from and better than their competitors.  Informative advertising- provides useful information about a product  Bait and switch- a type of false advertising (advertise a very low price and talk them into higher price items.)

10. Getting information on the types and prices of products available from different stores or companies. CamelBakCamelBak M.U.L.E 100 oz $100 Camelbak Tycoon 100 oz. Hydration Pack $74.95 Regatta Adventure Tech 10L Hydro Pack 330oz $26.95

11. Consider the following when making a purchase:  Price  Warranty- the promise made by the manufacturer to repair or replace the product if it is faulty.  Brand name or Generic?

12. Consumer Rights  Right to safety- protection against dangerous goods  Right to be informed- against fraud and to make reasonable choices  Right to choose - competitive markets- no monopolies  Right to be heard- consumer will be listened to  Right to redress- payment to you for financial or physical damages caused by their products

13.  Transportation  Education  Product safety  Worker safety  Taxation

14.  Food and Drug Administration  Federal Reserve system  Federal Trade commission  National Labor Relations Board  Environmental Protection agency  Occupational Safety and Health Administration

15.  Merit Good Society considers these desirable by government leaders- museums, ballets, etc Government may subsidize these goods  Demerit Good- society considers these undesirable- tobacco, alcohol, gambling Government taxes and regulates demerit goods “Sin Taxes”

16.  Income redistribution- govt. activity that takes money from some,through taxes, to help citizens in need.  Tax dollars are used to subsidize 2 categories of assistance 1. Social-Insurance Programs 2. Public Assistance Programs

17.  Programs that pay benefits to retired and disabled workers, their families and the unemployed. Examples: Social Security Medicare Worker’s compensation Unemployment insurance A portion of your pay goes to these programs.

18.  Same as Welfare  Helps people based on need, regardless of age.  You don’t have to pay taxes to benefit  Examples- Welfare Medicaid Supplemental Nutrition Assistance Program (SNAP), (Food Stamps)