Consumer Economics
The study of economic interactions of consumers with their external environment
-involves economic analysis of market and non market consumption activities, incorporation relative social, psycholoigical, political and ecological considerations.
Consumer
One who acquires goods and services for ultimate consumption or use by a person, family or a household
-consumers responsible for 2/3 of all economic activity
- ultimate goal is to produce goods/services for consumers
Economic activities performed by consumers:
earning- wages salary profits
spending/consuming- a lot but not too much
utilizing- how do we use out time
boroowing- necessary for most(house car)
saving- money you don’t consume
investing- must be element of risk- money work for you
Economic System
-A mechanism by which land labor nat resources labor and capital are brought together in order to produce and then allocate goods and services to people.
Natural Resources may be
Renewable- trees water
Non renewable- oil fossil fuels
Inexhausted- solar power
Economic Systems
Capitalism- ind based private ownership; free market economy
Socialism- community based; govnt ownership
Political Systems:
Democracy- freedom to vote
Communism- no right to vote
-most economic/ political systems are mixed
-generall cap-dem; soci- comm. But exceptions (china)
4 Groups In US economy
1. Consumers- maximizes utility with goods and services
2. Producers- mazimizes profits through sales of goods and services
3. Government- promotes safety/welfare of public
4. Foreign sector- provides products and external markets for US ...