Ch 24: Personal Finance: Consumer Decision Making

About This Chapter

Use these video and text lessons to uncover how consumer spending habits shape and change the economy. Find out how investing in education can affect consumers, and go over financial policies that impact taxes.

Personal Finance: Consumer Decision Making - Chapter Summary

In this chapter, our video and text lessons highlight the importance of consumer choice and how it influences our economy. Learn about the different factors that affect consumer choices, such as education, social situations, class issues, and values. Study theories about improving the earning potential of individuals by investing in training and education. Analyze how recognized leaders and celebrities can encourage consumers to purchase or boycott products and services.

Savings and spending habits are influenced by certain factors. Look at the different types of incentives and then determine whether such incentives affect consumers. Review how monetary and related fiscal policies at both state and federal levels impact the economy. Examine the effect of sales tax on consumers in different states. Look at the relationship between income groups and changes in sales tax rates. Upon completing this chapter, you should have more knowledge about the following topics:

  • Income groups
  • Effects of tax increases and decreases
  • Consumer buying decisions
  • Economic theories about consumers
  • The importance of choice
  • The effects of investing in education

Using Study.com ensures that you will have access to the educational materials you need. We have designed our video and text lessons to be short for maximum retention. Each lesson is as entertaining as it is packed with relevant facts. Besides viewing our video lessons, you can read through lesson transcripts. As a more personal touch, you can even ask our instructors questions about any lesson.

8 Lessons in Chapter 24: Personal Finance: Consumer Decision Making
Test your knowledge with a 30-question chapter practice test
How Investing in Education Impacts Earning Potential

1. How Investing in Education Impacts Earning Potential

It is no surprise that those with a bachelor's degree can earn significantly more than their counterparts with only a high school diploma. In this lesson, we will explore the degree types associated with potentially higher earnings.

Impact of Incentives on Personal Financial Decisions

2. Impact of Incentives on Personal Financial Decisions

Spending on the things we want makes us happy. Saving for the things we need makes us feel responsible. Investing for the future makes us feel secure. In this lesson, we will explore how all three actions are often motivated by our emotions.

Consumer Preferences & Choice in Economics

3. Consumer Preferences & Choice in Economics

Why do consumers choose to purchase certain products or services? In this lesson, you will learn what consumer preference assumptions are and how they affect consumer choice in economics.

Consumer Theories in Economics: Decision Making, Incentives & Preferences

4. Consumer Theories in Economics: Decision Making, Incentives & Preferences

Really, what do we know about consumers? Considering that there are billions around the world, our knowledge is far from perfect. However, economists have a number of ideas and assumptions about consumers that help inform their theories.

Influences on Consumer Buying Decisions: Cultures, Values & More

5. Influences on Consumer Buying Decisions: Cultures, Values & More

External influences are all around us and play a large role in our buying decisions. Watch this video to see how cultures, values and other influences shape our purchases.

Effects of Fiscal & Monetary Policy on Personal Finance

6. Effects of Fiscal & Monetary Policy on Personal Finance

In this lesson, we'll define fiscal and monetary policy. We'll discuss the difference between loose and tight monetary policies and show you how each one can affect your personal finances.

Sales Tax: Definition, Types, Purpose & Examples

7. Sales Tax: Definition, Types, Purpose & Examples

Learn what sales tax is and get information about many of the different types that you may pay. Discover where all that money goes and how it is used to offer services that you benefit from every day.

Impact of Sales Tax Increases on Different Income Groups

8. Impact of Sales Tax Increases on Different Income Groups

Charging consumers a percentage of their purchases on different types of goods and services is a common way municipalities raise funds for public services. In this lesson, we'll learn how increasing this sales tax impacts different income groups.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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