Commerce Unit 1

A consumer is someone who purchases a product or service in order to satisfy their needs and wants.

A need is something a person has to have in order to survive, like water.

A want is something a person would like to have but doesn’t need, like an Xbox.

A good is a tangible and physical product that someone can buy, like a car.

A service is when you pay for a skill, like a car repair.

A durable good is something that lasts for an extended period, like furniture.

A non-durable good is something that lasts for a limited time, like a sandwich.

Land resources occur naturally, such as forests, coal, and fertile soil.

Labor includes both physical and mental effort by people who are working.

Capital resources are goods used to make other goods, like a tractor for crop production.

Enterprise is the ability to combine land, labor, and capital to earn a profit.

Opportunity cost is the value of the next best alternative given up when making a choice.

Prices vary due to factors like customer service, convenience, marketing, age, income, and environmental considerations.

Consumers buy locally to support the local economy, get fresher products, and have shorter supply chains.

Advantages include convenience, broader options, price comparisons, and discounts.

Disadvantages include no physical check, shipping costs, longer delivery times, and potential scams.

A credit card allows deferred payment with potential rewards but may charge interest if unpaid.

A debit card allows direct bank payment with no borrowing, requiring funds in the account.

Digital wallets like PayPal or Apple Pay allow secure online transactions.

Buy now, pay later allows delayed payment in installments but may include late fees if unpaid.

Cash has no interest or fees and is widely accepted.

Credit cards may incur high interest and lead to debt if not paid.

Digital wallets are limited to merchants who accept them and have potential privacy concerns.

Unconscionable conduct is unethical or unjust behavior that takes advantage of vulnerable customers.

ACL sets standards for fair trade and product safety and protects against misleading conduct.

A consumer scam is a tactic used to deceive customers for financial gain, like online shopping scams.

Warning signs include urgent requests, too-good-to-be-true offers, and unknown senders.

An offer is a proposal to enter into a legal agreement.

ACL guarantees that products must be safe, durable, and meet reasonable expectations.

The right to safety protects consumers from dangerous or harmful products.

False advertising is misleading consumers about a product’s qualities or benefits.

A consumer guarantee is a promise that a product will meet reasonable standards and be fit for its purpose.

Identify the issue, contact the business, negotiate, seek help, and take legal action if needed.

Personal consequences include stress and reduced quality of life.

Social consequences include strained relationships and possible isolation.

Bankruptcy is a legal process where a person declares they can’t repay their debts.

A payday loan is a short-term, high-interest loan meant to be repaid on the next payday.

Long-term planning helps avoid debt, set goals, and provides financial security.

Superannuation is a retirement savings fund with regular contributions invested for long-term growth.

Compound interest is interest earned on both the initial amount and accumulated interest, boosting savings over time.

A budget is a financial plan outlining income and expenses over a specific period.

Fixed expenses are consistent monthly costs, like a mortgage or car payments.

Savings plans help people save for future needs, emergencies, and major purchases.

Retail funds are superannuation options run by financial institutions with a range of investment choices but higher fees.

Industry funds are superannuation options often with lower fees, managed for members rather than shareholders.

A hardship variation allows borrowers to temporarily adjust loan terms due to financial difficulty.