About This Chapter
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the GACE Economics (538): Practice & Study Guide course
- Basic Economic Concepts & Terms
- Scarcity, Choice & The Production Possibilities Curve
- Comparative & Absolute Advantage, Specialization & Trade
- Supply, Demand & Market Equilibrium
- Determining Price in Economics
- Government Issues in Economics
- Business Organization & Decision Making
- Producers & Production in Microeconomics
- Understanding Macroeconomic Equilibrium
- Scarce Economic Resource Markets Basics
- Economic Market Structures
- Basics of Measuring the Economy
- Understanding Economic Growth and Productivity
- Inflation & Adjustment in Economics
- Unemployment Basics
- Understanding Inflation & Unemployment
- Overview of Aggregate Demand & Supply
- Fiscal Policy & Monetary Policy
- Expansionary & Contractionary Gaps
- Money & the Market
- The Central Bank & Monetary Policy
- Foreign Exchange & Trade Balance
- Overview of Inflows, Outflows & Restrictions
- Personal Finance: Savings & Investments
- GACE Economics Flashcards