consumer affairs

Question 1

Define a consumer

Answer 1

A consumer is any individual, group or onrganization that acquired goods and services from a supplier

Question 2

Advantages of purchasing using credit cards

Answer 2

Having credit enables consumers to buy goods or assets without having to pay for them in cash at the time of purchase.

Question 3

Disadvantages of purchasing using credit cards

Question 4

What is consumer affairs

Answer 4

1. Concerned with the relationship between the buyer and consumer
2. concerned with establishing rules and codes of conduct

Question 5

What is the purpose of the rules in consumer affairs?

Answer 5

1. safeguard/protect the rights of the consumers
2. ensure the market place is fair for business, for competing suppliers

Question 6

What is a good

Answer 6

A goodis a product that can be used to satisfy a need or a desire

Question 7

3 characteristics of goods:

Answer 7

1. tangible product
2. can be deliverd from seller to purchaser
3. ownership is transferred from seller to purchaser

Question 8

types of goods - name 4

Answer 8

1. economic goods
2. free goods
3. consumer goods
4. producer goods

Question 9

types of goods - explain the difference between the 4

Answer 9

1. economic goods - goods that command a price
2. free goods - have utility but no value e.g. sunlight, air
3. consumer goods - available directly to the consumer in the form in which they are intended to be used e.g. bread. vegetables, shoes, television
4. producer goods - those used to make goods

Question 10

What is a service

Answer 10

A service is provided to meet a need or desire

Question 11

4 characteristics of services

Answer 11

1. intangible - not something that can be touched or physically measured
2. service has economic value when consumer pays for it
3. service provider uses a range of skills, expertise adn aptitude to perform teh service
4. carries out work that the consumer don’t have time, skill or resources to do themselves

Question 12

person who provides a service is called …

Answer 12

service provider

Question 13

person who sells goods is called…

Answer 13

supplier or seller

Question 14

define public service

Answer 14

services that are paid for with tax revenue and provided by the government

Question 15

examples of public services

Answer 15

• education
• health
• transportation
• waste/garbage disposal
• social welfare
• justice (courts, etc)
• immigration and customs
• housing
• child protection
• water supply

Question 16

what are the stages of the chain of distribution of goods and services

Answer 16

Manufacturer or producer
–>Wholesaler
–>Retailer
–>Customer

Question 17

4 elements of the producer or manufacturer

Answer 17

• production of goods and services
• requires finance
• requires other elements

Question 18

Name 5 things producer of goods requires finance for

Answer 18

• purchase land,
• build warehouse
• buy raw materials
• pay wages
• insurance

Question 19

Other than finance, what other things does manufacturer require?

Answer 19

• skill
• personnel
• marketing of product
• transport

Question 20

name 4 activities of the wholesaler

Answer 20

• buy in bulk
• takes on the duty of marketing
• provides warehousing for storage
• stores goods and releases them in times of shortage

Question 21

name 4 activities of the retailer

Answer 21

• buys in bulk
• breaks the bulk to suit the requirements of individual customers
• provides goods in the locality, which may be distant from the sources
• provides personal services to customers

Question 22

What are the 4 categories of consumers

Answer 22

1. individuals, groups, institutions
2. consumer of goods
3. consumer of services
4. consumer of credit

Question 23

Explain the interaction between consumers and manufacturers, wholesalers and retailers

Question 24

what is credit

Answer 24

credit is the deferred payment of a debt

Question 25

Examples of consumer credit

Answer 25

• personal loans
• credit cards
• hire purchase
• mortgages

Question 26

Explain what is a personal loan

Answer 26

• individuals apply for a loan from a bank or similar financial institution
• Loan will be taken out over an agreed period of time
• given at a rate of interest

Question 27

What is a credit card (3 points)

Answer 27

• credit card is used when individual sets up a credit account at a bank or similar institution
• can be used as a form of payment for goods and services
• cardholder pays off a certain amount of outstanding debt on a regular basis

Question 28

Define hire purchase

Answer 28

• allows people to have use of goods for a fixed period of time
• in return for a deposit followed by regular payments
• The hirer does not own the goods
• vendor can repossess the goods if there is a default in payments

Question 29

Explain a mortgage

Answer 29

• is a loan associated with housing
• homebuyer or home builder can secure a loan with a bank or other financial institution
• loan will be secured against the value of the property for which the loan is being made

Question 30

List the factors that influence consumer demand for goods and services

Answer 30

• size of income
• taste patterns
• savings
• credit facilities and conditions
• fluctuations in supply
• quality
• pricing
• access to informations
• advertising
• consumer expectations

Question 31

What is a market

Answer 31

• a market is any structure that allows for transactions to take place
• where buyers purchase goods, services or information from sellers
• goods and services are bought and sold in a market

Question 32

What is supply?

Answer 32

Supply is the amount of a product that producers are willing and able to sell at a particular price

Question 33

What is demand?

Answer 33

Demand is the willingness and ability to buy a product
at a given price
at a given time

Question 34

What is advertising?

Answer 34

Advertising is the act of presenting a product or event to the public.
Advertising can be informative or persuasive

Question 35

**How does advertising influence demand?

Answer 35

Informative advertising provides information on availability, uses, price and content.
Persuasive advertising focuses on people’s desires and seeks to enhance the desirability of the product being advertised. Successful advertising will produce an increase in demand. Misleading advertisemens can result in decreased demand.