Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Commerce End of Year Exam > Consumer And Financial Decisions > Flashcards

Consumer And Financial Decisions Flashcards

1
Q

Define a consumer.

A

A consumer is someone who purchases goods and services to satisfy their needs and wants.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define goods.

A

Goods are tangible items.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define services.

A

Services are things that are done for you in return for money.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define needs.

A

Needs are things necessary for your survival such as food and water.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define wants.

A

Wants are things unnecessary for survival, such as phones and makeup

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Define money.

A

Money is any token with an agreed value that people accept as payment in exchange for a good or service.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define price.

A

Price is the amount of money a consumer is prepared to offer in exchange for a good or service.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define resource.

A

A resource is anything that can be used in the production of a good or service.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Define scarcity.

A

Scarcity is a lack of a resource needed to satisfy consumer wants and needs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the difference between durable and non-durable goods?

A

A durable good is one that can be used many times, such as a car or TV, while non-durable goods can only be used once, such as a sandwich or tissue.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Define an opportunity cost.

A

An opportunity cost is what an individual gives up in order to satisfy a need or want.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Four types of resources:

A
  • Land
  • Labour
  • Capital
  • Enterprise
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is land?

A

Land is a naturally-occuring resource, such as forest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is labour?

A

Labour is the physical and mental effort of working people.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is capital?

A

Capital resources are goods used to make other goods.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is enterprise?

A

Enterprise combines land, labour and capital resources to earn a profit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Factors affecting consumer decisions:

A
  • Customer service
  • Price
  • Convenience
  • Marketing and advertising
  • Gender
  • Age
  • Disposable income
  • Environmental considerations
  • Social media
  • Cultural factors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Define income.

A

Income is money received on a regular basis from work, property, business, investment or welfare.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Why are financial plans so important?

A

Financial plans are important for ensuring they have enough money to take care of their needs and wants.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Define comparison shopping.

A

Comparison shopping is shopping around to obtain the best deal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

8 rules for comparison shopping:

A
  1. Think carefully about what you want
  2. Shop around for the best deal
  3. Investigate the product’s features
  4. Decide beforehand how you want to pay
  5. Check the refund and returns policy
  6. Do not sign a blank paper or anything you don’t understand
  7. Compare after-sales service and guarantees
  8. Keep all receipts and invoices.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Define impulse buying.

A

Impulse buying refers to buying items that a person was not planning on purchasing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is a generic product?

A

A generic product is an unbranded item without a specific company’s label, offered at a lower cost because it is an alternative.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Sources for comparison shopping:

A
  • Online retailers (e.g Amazon and eBay)
  • Brick-and-mortar stores (e.g grocery shop)
  • Price comparison websites (e.g Google shopping)
  • Coupon and discount websites (e.g honey.com)
  • Social media groups and forums (e.g Reddit or TikTok Business)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Advantages of comparison shopping:

A
  • Cost savings
  • Evaluation of product features and quality
  • Variety of options
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Strategies to avoid impulse buying:

A
  • Prepare a shopping list
  • Compare prices at different stores
  • Ask yourself if you really need the item
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is bad debt?

A
  • Lifestyle assets
  • Burrowing to feed your ego
  • Burrowing for holidays, treats or luxury items
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is good debt?

A
  • Burrowing to invest
  • Tax management
  • Items you need and can’t wait for
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Factors to consider for affordability:

A
  • Income
  • Debt load
  • Financial goals
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Factors that may change affordability:

A
  • Job loss or income reduction
  • Unexpected expenses
  • Interest rate changes
  • Life events
  • Health issues
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Supply chain:

A
  • Raw materials
  • Supplier
  • Manufacturer
  • Distributer
  • Retailer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What is mail order?

A

Mail order is a system of shopping in which the consumer completes and posts an order form, usulaly from a magazine and catalogue, and receieves products through the mail.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Advanatges of mail order:

A
  • Greater range of available products compared to retail stores
  • Convenient for disabled consumers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Disadvantages of mail order:

A
  • Losing the money if the business does not send the product
  • Products appearing different from the catalogue
  • Experiencing problems tracing a business if a refund ir required
35
Q

What is online shopping?

A

Online shopping is when a consumer buys goods and services over the internet.

36
Q

Advantages of online shopping:

A
  • Convenient comparison shopping
  • Mobile app accessibility
37
Q

Disadvantages of online shopping:

A
  • Delivery fees
  • Time-consuming returns
  • Security concerns with card details
38
Q

What are retail outlets?

A

Retail outlets are when buyers and sellers come together in a physical store or marketplace and products are exchanged for money.

39
Q

Types of retail stores:

A
  • Convenience stores
  • Specialty sotres
  • Discount variety stores
  • Factory outlets
  • Department stores
  • Supermarkets
40
Q

Common payment methods:

A
  • Cash
  • Credit cards
  • Debit cards
  • Online bank transfers
  • Mobile banking apps
41
Q

What is credit hangover?

A

Credit hangover is the regret experienced after borrowing too much, leading to difficulty in managing debt.

42
Q

Pros of a cashless society:

A
  • Decrease in money laundering
  • Easier currency exchange
  • Less time handling and storing money
43
Q

Cons of a cashless society:

A
  • Potential data breach may expose personal info
  • Hacking risks
  • Technological issues
  • Increased temptation to overspend
44
Q

Two examples of protective legislation:

A
  • Competition and Consumer Act 2010
  • Fair Trading Act 1987 (NSW)
45
Q

What does the Competition and Consumer Act 2010 enforce?

A

Under this Act, an unconscionable act by a seller is any practice that is unreasonable, such as scams and rip-offs.

46
Q

Common scams and rip-offs:

A
  • False advertising
  • Referral selling
  • Unsollicited goods
  • Special prizes and offers
  • Pyramid schemes
47
Q

What is bait and switch advertising?

A

Bait and switch advertising is when a few products are advertised at reduced prices to attract customers who are instead directed to higher-priced items.

48
Q

What is false advertising?

A

False advertising is when advertisements claim that a product has a specific quality when it does not.

49
Q

What is referral selling?

A

Referral selling is when the consumer is offered a ‘special deal’ if they buy the product and then supplies the names of potential customers to the trader. The ‘special deal’ is usually a discount which is not always enforced.

50
Q

What are unsollicited goods?

A

This practice involves sending unordered goods through the mail and them demanding payment for them. The Competition and Consumer act 2010 prevents you from having to pay for these goods.

51
Q

What are pyramid schemes?

A

Pyramid schemes are when you are required to pay a joining fee with the opportunity of earning quick and easy money as you recruit new members. However, most participants lose money.

52
Q

What does the department of Fair Trading enforce?

A
  • Consumer complaint resolution
  • Business regulation
53
Q

What is a contract?

A

A contract is a legally enforcable agreement between two ro more persons or parties.

54
Q

What makes a contract legally binding?

A
  • Proposal
  • Acceptance
  • Consideration (each party gives up something of value)
55
Q

What are the four basic rights of consumers?

A
  1. Safe products
  2. Accurate product information and descriptions
  3. Full disclosure of the terms of sale
  4. Honoured consumer guarantees and warranties
56
Q

What is the purpose of the Australian Consumer Law 2011?

A

The Act’s main purpose is to protect consumers against:
- False advertising
- unconscionable conduct
- Unfair trade practices

57
Q

Who enforces the Australian Competition and Consumer Act 2010?

A
  • Australian Competition and Consumer Commission (ACCC)
  • Each state and territory’s consumer agency
  • Australian Securities and Investments Commission (ASIC)
58
Q

Consumer guarantees for goods:

A

Consumers are guaranteed that the goods they buy:
- Are of acceptable quality
- Are fit for purpose
- Match the description
- Comply with any express warranty
- Are legally owned by the seller without any charges
- Have spare parts reasonably available

59
Q

Consumer guarantees for services:

A

Consumers are guaranteed that the services they buy:
- Are fit for purpose
- Provided with reasonable skill and care
- Provided within a reasonable time

60
Q

Consumer remedies:

A

Refund, replacement or repair

61
Q

Consumer responsibilities:

A
  • Paying the correct amount
  • Purchasing goods and services from legal and ethical sources
  • Using the products in an environmentally friendly manner
  • Accepting most of the risk when they purchase something
62
Q

Organisations that provide assistance for consumers:

A
  • State government
  • Ombudsmen
  • Federal government
  • CHOICE
63
Q

What does the state government do to assist consumers?

A
  • Assists consumers resolve their complaints
  • Checks that products meet Australian safety standards
  • Warns the community about scams and rip-offs
64
Q

What are ombudsmen?

A

Ombudsmen are agents who have the task of investigating and reporting complaints.

65
Q

How does the federal government assist consumers?

A
  • Australian Securities and Investments Commission (ASIC)
  • Australian Competition and Consumer Act (ACCC)
66
Q

What is CHOICE?

A

CHOICE is Australia’s largest consumer watchdog organisation. It deals with consumer enquiries and investigates consumer complaints.

67
Q

Points to remember when making a complaint:

A
  • If using the phone, always get the name of the person you are talking to
  • Keep a written record of all conversations and copies of letters and emails
  • File and receipts for proof of purchase
  • If you leave the good with the trader, request a receipt
  • Check your guarantee to determine whether is covers the problem you are trying to solve.
68
Q

Personal consequences of poor management of finances:

A
  • Inability to maintain lifestyle choices
  • Feelings of self-doubt and regret
  • Stress at home, school and work
69
Q

Social consequences of poor management of finances:

A
  • Relationship tensions or breakdown
  • Not being able to afford the cost of social activites
  • inability to holiday, travel or invest with others
70
Q

Legal consequences of poor management of finances:

A
  • Garnishee of your wages or bank accounts
  • Writ of execution
  • Bankruptancy
71
Q

Ways to be financially responsible:

A
  • Creating a personal budget
  • Rolling all debts into one loan
  • Regularly depositing in a savings account
72
Q

3 main types of financial plans:

A
  • Short-term plans (1-3 year goals)
  • Medium-term plans (4-6 year goals)
  • long-term plans (7+ year goals)
73
Q

What is the age that Australians can access aged pensions?

A

Australians can access aged pensions at 67 years.

74
Q

Strategies for a successful retirement:

A
  • Investing in real estate
  • Investing in Bitcoin, shares or managed funds
  • Superannuation
75
Q

What is superannuation?

A

Superannuation is a compulsory savings account with money set aside and saved while working.

76
Q

Strategies for effective superannuation:

A
  • Paying additional money into your account for tax benefits
  • Have one Super account to minimise fees and maximise returns
77
Q

Steps for a budget:

A
  1. Calculate your total income
  2. Record your expenses
  3. Total your expenses
  4. Compare your total income with your total expenditure
  5. Assess your financial position
78
Q

Where can Australian access loans?

A
  • Banks
  • Credit unions
  • Building societies
  • Finance companies
79
Q

What is a fixed interest rate?

A

A fixed interest rate stays the same throughout the term of the loan.

79
Q

What are loan repayment based on?

A
  • Sum burrowed
  • Term of the loan
  • Whether the interest rate is fixed or viariable
80
Q

What is a variable rate?

A

Variable rates change over the period of the loan.

81
Q

What choices do Australians have when applying for a hardship variation?

A
  • Extending the loan period and making smaller repayments
  • Postponing repayments for an agreed period
  • Selling assets and only paying interest on the loan
82
Q

Support for financial difficulties:

A
  • Financial advisors
  • Customer support in banks
  • Centrelink
83
Q

What is barter?

A

Barter is the outdated method of swapping or exchanging one good for another.

Commerce End of Year Exam (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions