Week 1 Flashcards
What is injurious consumption? Give an example.
Not everything you buy has + outcomes or is a pleasant memory.
Movie tickets–seeing a bad movie
What is consumer economics?
Study of how people…
Deal with scarcity
Fulfill needs in goods, services, actions
Select among goods services, goods, or action
Helps us understand how the marketplace works, our role in it and how choices affect our lifestyles
Define “Caveat Emptor”
“May the buyer beware.”
What is the difference between needs and wants?
Needs are things that are required such as food and water.
Wants are things wished for or desired
Define Opportunity costs.
When one thing is selected, something else is given up, the one you DON’T choose is the opportunity cost
What are the 5 sources of income?
Personal partnerships Businesses Investment Gov't Other sources
What are the 3 types of business ownership?
Sole proprietorship
Partnership
Corporation
List the methods in finding a job…
Networking, professional and trade organizations, job/career fairs
Traditional sources: employment agencies, cold contacts, Internet, corporate career centers, online job sites
What are the 5 things for being prepared for a job for being prepared for a job interview?
First impressions matter Go alone Bring a personal data sheet Be well prepared (research company/job) Don't be late!!
What are the 5 things you do/have on the first day on the first day of a new job?
First impressions Form W-4 for taxes Social security card Work permit Company policy handbook
What are the expectations of an employer? An employee?
Employer: follow the rules, develop a good work ethic and positive attitude, accept criticism, admit your mistakes
Employee: receive paycheck, fringe benefits, training, accommodation for disability, be told of changes in responsibilities, get evaluation of work performance.
Give examples of alternative working arrangements.
Flextime
Job sharing
Telecommuting
What are he a/d to entrepreneurship ?
Own boss, set own hours, make all decisions, possibly get financial security, create something you can pass onto children or others
Long hours to succeed, taking a big financial risk, risk high chance of failure
A/d to sole proprietorship
All profits to single owner, no boss, easy start up, simple tax filing
Limited resources, Capitol $, expertise(skills), limited life of business, unlimited personal liability of owner
A/d to partnership
More resources than sole prop., Capitol, expertise, easy start up, limited sharing of profits and decision making
Fewer sources than corporation, Capitol, expertise, possible disagreement between owners, unlimited personal liability of owners
A/d of corporation?
More resources, Capitol, expertise, transferability of ownership, limited involvement of owners if desired, limited personal liability of owners
Lack of control-several owners, more difficult start up-charter articles of incorporation, double taxation-corporate and personal
Salary
Annual pay
Royalties
Artists, writers, musicians- who make profit every time their song is played etc.
Tips
In addition to your pay
Invest
Stocks-dividend
Bonds-interest
Real estate- rental property
Goods
Physical objects that are produced (iPods, Oreo cookies, automobiles)
Services
Actions that are performed by someone (repairing a car, serving a meal)
Grant
Research for scirpentists and doctors
Retailers
Those who sell to consumers-strive to offer the right mix of products that the consumer is looking for
Commission
% of sales earned
Bait and Switch
Advertises an item for a cheap price to get you to the store but when you get there, store is sold out of that item but points you to a more expensive one
Deceptive pricing
Advertising a sale price that is no different for the regular price which is illegal.
Inheritance
From relatives
Fraud
Deceitful conduct designed to manipulate another persons for some gain.
Better business bureau (BBB)
Takes care of business problems and addresses them
Wages
Hourly pay
Small claims court
Amounts between $1000-5000 and you do not need a lawyer
Class action suit
Lawsuit filed on behalf of a group of people with the same complaint
Entrepreneur
Having your own buisness
Gross pay
Your pay money before the deductions occur
Net pay
The pay after the deductions occur
Corporation
Owning a business with more people on a larger scale…people may own shares of a corporation
LLC limited liability company
Limited personal liability of owners
Simpler tax situation than corporation
Easier start up than corporation
