Economics Basics: Consumer, Credit, Needs, and Wants

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Questions and Answers

What is the responsibility of consumers to ensure they make informed purchasing decisions?

To gather all the information and facts available about a product or service and keep abreast of changes and innovations in the marketplace.

What is the significance of speaking out as a consumer responsibility?

To inform manufacturers and governments of needs and wants.

What is the consequence of not fulfilling the responsibility to respect the environment?

Contribution to pollution, waste, and littering.

How does a hire purchase agreement differ from a loan?

In a hire purchase, the buyer does not own the asset until the full amount of the contract has been paid. Signup and view all the answers

What is the primary purpose of a credit card?

To borrow funds to pay for goods and services. Signup and view all the answers

What is the key distinction between consumer rights and consumer responsibilities?

Consumer rights are things the consumer is entitled to, while consumer responsibilities are what they are expected to carry out. Signup and view all the answers

What is the consequence of not fulfilling the responsibility to complain?

Manufacturers and businesses may not be aware of consumer dissatisfaction and may not make necessary improvements. Signup and view all the answers

What is the responsibility of consumers in terms of ethical consumption?

To be an ethical consumer and avoid engaging in dishonest practices which cost all consumers money. Signup and view all the answers

What is the definition of a consumer?

Someone who has purchased goods and or services for personal consumption or who uses economic goods and services to satisfy their needs and wants. Signup and view all the answers

What is credit?

Obtaining goods or services before payment, based on the trust that payment will be made in the future. Signup and view all the answers

What is the difference between needs and wants?

Needs are human requirements necessary for survival, whereas wants are human desires that are unlimited. Signup and view all the answers

What is the Right to Satisfaction of Basic Needs?

Citizens must demand access to essential goods and services such as adequate food, clothing, shelter, healthcare, education, public utilities, water, and sanitation. Signup and view all the answers

What is the Right to be Informed?

Consumers have the right to be protected against fraudulent, deceitful or misleading information and to have access to accurate information and facts needed to make informed choices and decisions. Signup and view all the answers

What is the Right to Redress?

Consumers have the right to be compensated for misrepresentation, shoddy goods or unsatisfactory services. Signup and view all the answers

What is the Right to Consumer Education?

Consumers have the right to become skilled and informed consumers capable of functioning effectively in the marketplace. Signup and view all the answers

What is the Right to a Healthy Environment?

Consumers have the right to a healthy environment that enhances the quality of life and provides protection from environmental problems for present and future generations. Signup and view all the answers

Study Notes

Consumer Definition and Concepts

A consumer is someone who purchases goods and services for personal consumption or uses economic goods and services to satisfy their needs and wants.
Credit refers to obtaining goods or services before payment, based on the trust that payment will be made in the future.
Needs are human requirements that must be satisfied for survival, such as food and clothing.
Wants are human desires that are unlimited, such as designer clothes.

Payment Methods

Cash
Cheque
Debit Card
Credit Card

Consumer Rights

The Right to Satisfaction of Basic Needs: access to essential goods and services.
The Right to Safety: protection from hazardous goods or services.
The Right to be Informed: access to accurate information and protection against fraudulent information.
The Right to Choose: access to a variety of products and services at fair and competitive prices.
The Right to be Heard: expressing and representing consumer interests in economic and political decisions.
The Right to Redress: compensation for misrepresentation, shoddy goods, or unsatisfactory services.
The Right to Consumer Education: becoming a skilled and informed consumer.
The Right to a Healthy Environment: enhancing the quality of life and protecting against environmental problems.

Consumer Responsibilities

The Responsibility to be aware of the quality and safety of goods and services before purchasing.
The Responsibility to gather all the information and facts available about a product or service.
The Responsibility to Think Independently and make choices about well-considered needs and wants.
The Responsibility to Speak Out and inform manufacturers and governments of needs and wants.
The Responsibility to Complain and inform business and other consumers of dissatisfaction with a product or service.
The Responsibility to be an Ethical Consumer and avoid dishonest practices.
The Responsibility to Respect the Environment and avoid waste, littering, and pollution.

Forms of Credit

Hire Purchase: an arrangement for buying expensive consumer goods on credit, where the buyer makes an initial down payment and pays the balance in installments plus interest.
Credit Card: a card issued by a financial company enabling the cardholder to borrow funds for payment of goods and services.
Loan: a specific amount of money given to another party in exchange for future repayment of the loan value or principal amount, along with interest or finance charges.

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Description

This quiz covers the fundamental concepts in economics, including the definition of a consumer, credit, needs, and wants. Test your understanding of these basic economic principles.