1. How do I contribute to the economy?
You, The Consumer
How do I contribute to the economy?

2. Important Terms You Need to Know
Consumer
any person or group that buys or uses goods and services to satisfy personal needs and wants.
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3. Important Terms You Need to Know
Marketing
All the activities needed to move goods and services from the producer to the consumer.
Utility
The ability of any good or service to satisfy consumer wants.
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4. Important Terms You Need to Know
the types of utility
Form utility
The conversion of raw materials into goods and services
Place utility
Having a good or service available where consumers want them

5. Important Terms You Need to Know
the types of utility
Time utility
Having a good or service available when consumers want them.
Ownership utility
The satisfaction that comes from owning a good or service.

6. Important Terms You Need to Know
Disposable income
money remaining after taxes have been paid.
Discretionary income
money remaining after bills have been paid.
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7. Important Terms You Need to Know
Rational self-interest
Individuals try to maximize the expected benefit achieved with a given cost or to minimize the expected cost of achieving a given benefit.
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8. Basic Buying Principles
Gathering Information
Using advertising wisely
Comparison shopping
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Consumer Rights
The right to safety
The right to be informed
The right to choose
The right to be heard
The right to redress
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Types of advertising
Competitive advertising
Advertising that attempts to persuade consumers that a product is different from and superior to any other.
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Types of advertising
Informative advertising
Advertising that gives information about a product.
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Types of advertising
Bait and Switch (deceptive advertising)
An ad that attracts consumers with a low-priced product, then tries to sell them a higher-priced product.
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A few more terms
Comparison shopping
getting information on the types and prices of products available from different stores and companies.
Warranty
promise made by a manufacturer or a seller to repair or replace a product within a certain time period if it is found to be faulty.
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Food and Drug Administration (FDA)
Government agency that protects the public against impure and unsafe foods, drugs, and cosmetics.
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A few more terms
Brand name
word, picture, or logo on a product that helps consumers distinguish it from similar products.
Generic brand
general name for a product.
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