Economics Flashcards
GDP
Gross Domestic Product
Total value of all g&s in an economy
GDP is ↓ during a recession
Demand \
↓S↓P↑D
Quantity of g&s that consumers are willing to buy at various prices
Law of Demand- consumers will demand more of a product a ↓er price than at a ↑er price
Supply /
↑P↑S↓D
Quantity that business is able to make, offer more at ↑er price
4 Basic Economic ?s
What? How? How much? For whom?
Loss Leader
Something that attracts ppl to buy something, ok brings you into store
Bait & Switch
You advertise something that’s on sale, illegal b/c you don’t physically have the product
Net Weight
Weight of product w/o packaging
Unit Price
Price/unit
How ingredients are listed on a food label
Most→least
“Sell By Date”
When they have to sell it by, has to be pulled from shelf, you can still eat it
CPSC
Consumer Product Safety Commission
Test products b4 they go on the market to make sure they’re safe
UL
Underwriters Laboratories
Tests products to prevent against fire, electric shock, & hazards
Consumer Union
Test products & rate them
Magazine Consumer Reports lists everything based on safety & reliability
BBB
Better Business Bureau
Tell you what are good businesses
FTC
Federal Trade Commission
Regulate market, protect us as consumers, make sure ppl are saying & doing what they say, head, protect from deceptive
3 Ways to Protect Against Identity Theft
Keep info private (pin #), keep track of credit, keep bills
Included in a Complaint Letter
What/when/where purchase (name, serial #, model #)
State problem/compliment & any history of p/c
Give possible remedy for the prob. & ask for action w/in a reasonable amt. of time
Enclose copies of all docs
Include address & phone #
Signature
Resolving Complaints
- Return to Place of Purchase (Store Clerk)
- Ask to speak w/ manager
- Contact Company HQ
- Consumer Agency Assistance
- Legal Action
Legal Aid Society- network of community law offices that provide free or low-cost legal assistance
Legal Clinic is another option if the others don’t work out
Warranty
Company’s promise that the product will meet specific standards over a given time period
Full Warranty
Limited Warranty
Implied Warranty
very specific, written guarantee
written warranty w/ specified limitations that doesn’t meet the standards of a full warranty
unwritten guarantee that the product is of sufficient quality to do what it’s supposed to do
