Consumers In Society
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Consumer Economics
The study of economic interactions of consumers with their external environment
-involves economic analysis of market and non market consumption activities, incorporation relative social, psycholoigical, political and ecological considerations.
Consumer
One who acquires goods and services for ultimate consumption or use by a person, family or a household
-consumers responsible for 2/3 of all economic activity
– ultimate goal is to produce goods/services for consumers
Economic activities performed by consumers:
earning- wages salary profits
spending/consuming- a lot but not too much
utilizing- how do we use out time
boroowing- necessary for most(house car)
saving- money you don’t consume
investing- must be element of risk- money work for you
Economic System
-A mechanism by which land labor nat resources labor and capital are brought together in order to produce and then allocate goods and services to people.
Natural Resources may be
Renewable- trees water
Non renewable- oil fossil fuels
Inexhausted- solar power
Economic Systems
Capitalism- ind based private ownership; free market economy
Socialism- community based; govnt ownership
Political Systems:
Democracy- freedom to vote
Communism- no right to vote
-most economic/ political systems are mixed
-generall cap-dem; soci- comm. But exceptions (china)
4 Groups In US economy
Consumers- maximizes utility with goods and services
Producers- mazimizes profits through sales of goods and services
Government- promotes safety/welfare of public
Foreign sector- provides products and external markets for US goods and services
Socializing Costs and Privatizing Benefits
-spreads cost of running business over more people (involving others)
Ex. Dumping waste in a river- many more people affected by what company is doing
Assumptions for Consumer Sovereignty
Man is a rational being
Consumers have perfect information
Consumer Sovereignty-
Market situation where consumers have the power
Ultimitaly decide which products and services society will produce and consume
Producer Sovereignty
Producers have the power to decide which products and services society will produce and consume
Consumer Choice
Market condition that exists when consumers have the power to ultimately decide which products and services society will produce and consume.
Producer Sovereignty
Producers have the power to decide which products and services society will produce and consume
Consumer Choice
Market condition that exists when consumers are presented with options from which they can choose to buy or not
The Health Of the Economy
Consumer attitudes — indicators of economic confidence . If we aren’t confident in the economy in economy. Then we may not buy… which could create an economy that it what we cfeared it was originally.
Index of leading economic indicators.
Measures of economic growth
GDP)gross domestic product) total calue of all goods and services produced in the US regardless of ownership, over a period of time such as 1 year, measured in dollars
Real