Name______

Chapter 1.1: Decisions, Decisions

Directions: Rank your values in order of importance to you. Put a 1 next to the value that is most important to you, and an 18 next to the value that is the least important to you.

_____Getting good grades

_____Becoming independent

_____Being prepared for the future

_____Having a successful career

_____Having a strong marriage relationship

_____Communicating well with my parents

_____Being popular and well-liked

_____Having many friends

_____Being strong in my religion

_____Making a lot of money

_____Being creative

_____Having children

_____Having a loving family

_____Having a lot of leisure time

_____Being good at sports

_____Owning my own car

_____Being a good citizen

_____Traveling a lot

**Keep in mind…. If you truly value something, then you feel good about what you believe in and you are comfortable telling other people what you value. No one can force you to value something.

Directions: Read each statement below and fill in thecorrect vocabulary word.

Values
Goals
Needs
Wants / Opportunity Cost
Long-term goals
Life Span / Life-Span Goals
Life-Span Plan
Short-term Goals

Vocabulary Words:

  1. ______Things you want to accomplish in your life
  2. ______Strategy people create to help them achieve their life-span goals
  3. ______Value of your next best alternative whenever you make a choice
  4. ______Things you hope to accomplish with-in a year
  5. ______Time from your birth to your death
  6. ______Goals you hope to achieve over a period of years during your life span
  7. ______Things you cannot live without
  8. ______Important long-term goals you hope to reach during your life span
  9. ______Things you would like to have but you can live without
  10. ______Principles- standards by which you live by
  1. Write 2 short-term goals you hope to accomplish this school year:
  1. ______
  2. ______
  1. What steps will you take to accomplish these short term goals?
  1. Write 3 long-term goals you have:
  2. ______
  3. ______
  4. ______
  1. What steps will you take to accomplish these long-term goals?

1.2 Decision Making Process

Define:

Specify-

Search-

Sift-

Select-

Study-

Directions: Write the step that identifies the decision making process next to the letter.

______1. Research the internet, read, talk to salespeople and bicyclist.

______2. Decide whether or not you should buy a new mountain bike.

______3. After buying the bicycle, take it on a mountain trail.

______4. Test ride bikes at different stores, considering price and service.

______5. Choose a bicycle and buy it.

Decision Making Process Scenario

You have a part-time job at a discount store that pays $8 per hour after taxes. Your boss asks you to work next Sunday. You will be paid an overtime rate (1.5 times your regular rate of pay) if you accept. However, you have a big math test on Monday, and you were planning on studying Sunday.

  1. How much will you earn if you agree to work 8 hours on Sunday?
  1. What are the opportunity costs of each option?

Opportunity cost of working:

Opportunity cost of staying home and studying:

Impulse Buying vs. Rational Buying Decision

Define rational buying decision-

Define Impulse Buying decision-

  1. If you wanted to buy a DVD player, would this most likely be a rational buying decision or impulse purchase? Explain why.
  1. Give an example of an impulse purchase you have made.
  1. What could be a disadvantage of an impulse purchase?

1.3 Understanding Economic Systems

Define the following vocabulary terms:

  1. Economic System-
  1. Production-
  1. Resources-
  2. Human Resources-
  1. Nonhuman Resources-
  1. Economics-
  1. Profit-

4 different types of economies:

Traditional Economy / Command Economy
Market Economy / Mixed Economy
  1. The United States is considered this type of economy…

Who decides what products will be produced?

Government--I------I-----Consumers

Command Economy Market Economy

  1. Where does the United States fall on this continuum?

Supply & Demand

  1. Scarcity is the situation in which consumers’ wants are greater than the resources available to satisfy those wants
  2. True
  3. False
  1. Define:
  2. Demand-
  1. Supply-
  1. Equilibrium Price
  1. On the chart below, draw the supply and demand curves. Make sure to also label where the equilibrium price belongs.
  1. Define:
  2. Shortage-
  1. Surplus-

Critical Thinking

You decide to open your own pet-grooming business. What resources do you need to get started?

What costs do you need to consider?

Chapter 1.4: Making Decisions In A Market Economy

  1. Consumer are free to ______
  1. Producers are free to ______
  1. Write down a few examples of retailers-
  1. Define Manufacturer-
  1. Define Consumer Economics-
  1. Define Consumer Sovereignty-

Think of 5 companies that have gone out of business…(doesn’t have to be in Oswego area)

1.

2.

3.

4.

5.

Choose 3 of those 5 companies and brainstorm reasons why you think that company went out of business.

1.

2.

3.

  1. What is competition?
  1. Give an example of a product that causes competition between companies.
  1. What 3 things do profitable companies do in order to make them successful?

1.

2.

3.

Chapter 1.5: Advertising and Consumer Decisions

  1. Define Advertising:
  1. What do ads influence and persuade consumers to do?

Costs of advertising

  1. Why do businesses advertise?

Benefits of advertising

  1. How do consumers benefit from advertising?

Puffery Vs. Deceptive Advertising

  1. Define Deceptive Advertising:
  1. Give an example:
  1. Define Puffery:
  1. Give an example:

Directions: In the boxes below, write notes from your peers presentations about the different types of advertising. Next to the “Example of Ad,” write an example of an ad from their poster, or one you are familiar with, that explains that particular type of advertising strategy.

6 Types of Advertising

Brand Advertising
Example of Ad: / Informative Advertising
Example of Ad:
Comparative Advertising
Example of Ad: / Persuasive Advertising
Example of Ad:
Defensive Advertising
-Counters attacks from comparative ads
-A response to claims made by other companies
-The company is trying to convince you its company is the best choice. / Deceptive Advertising
-Designed to mislead you
-Exaggerated information about the product is given.