The Consumer

Question 1

What is a consumer

Answer 1

A consumer is a person who buys goods and pays for services

Question 2

What are goods

Answer 2

Items consumers buy for example food or clothes

Question 3

Give 1 example of impulse purchase

Answer 3

buying candy on the checkout line when you weren’t intending to do so.

Question 4

Give 1 example of planned purchase

Answer 4

Planned purchase buying the thing you came for.

Question 5

What are services

Answer 5

Jobs consumers pay others to for example a dentist or a hairdresser

Question 6

Whats the difference between paying someone Directly and paying some indirectly

Answer 6

We would pay barbers directly and we would pay taxes indirectly

Question 7

Whats a direct service

Answer 7

When consumers pay right away

Question 8

Whats an indirect service

Answer 8

When consumers pay for things like taxes

Question 9

What are 4 types of payments

Answer 9

Debit card, credit card, cash, paypal

Question 10

Advantage and disadvantage of cash

Answer 10

Advantage: there is no interest

Disadvantage: you could loose it

Question 11

Advantage and disadvantage of debit card

Answer 11

Advantage: Allows you to spend your own money So you don’t spend too much

Disadvantage: You might run out of money

Question 12

Advantage and disadvantage of credit card

Answer 12

Advantage: can borrow money from the bank

Disadvantage: Paying back the bank with interest

Question 13

What is the difference between goods and services

Answer 13

Services are people you pay to do things for you like a dentist. goods are something you buy yourself like clothes

Question 14

3 goods you use regularly

Answer 14

Milk, bread , chocolate

Question 15

3 services you use regularly

Answer 15

Dentist, doctor,barber

Question 16

What is budgeting

Answer 16

Budgeting is a plan for managing our money to help prevent debt

Question 17

Why is budgeting important?

Answer 17

To manage our spending
To prevent debt
To plan our use of money ( wise spending)
To help us save for larger purchases, example, holiday
To help us save for unforeseen expenses/emergencies

Question 18

What are Three advantages of renting

Answer 18

Usually cheaper than buying per month Not tied to one place can move on more easily
Landlord has To maintain the house

Question 19

Disadvantages of renting

Answer 19

You pay money every month but never own a house
You don’t build up a equity (Profit from owning a house )
Sometimes you have to Wait a long time for the landlord to fix stuff.

Question 20

What is expenditure

Answer 20

The money that is being spent