Consumer Education - TK2022

Framing within advertising affects your judgement and can lead to ______ ______. (two words)

Answer explanation

Framing is The way that an issue is posed to individuals. Advertisers frame products as things you “have to buy”.

Risky decisions are made when consumers believe they "have to buy" products they can't afford or don't need.

What is the #1 rule when writing a resume?

• Include all necessary elements

• Don't lie

• Proofread it and make sure it is professional

• List all of your relevant experience first

Answer explanation

The other choices are good things to do, but lying is never worth it.

What is the decoy effect?

Answer explanation

Consumers change preference between two options when presented with a third option that is a bad deal compared to the other two.

What is Opportunity Cost?

• The value of what you give up when making a decision

• The financial cost of purchasing products that you want

• Sacrificing quality for a lower cost product

• Helping others to make better financial decisions

Answer explanation

When presented with multiple options (an opportunity), you have to make a choice. Once you make your choice, the cost is that you no longer have the opportunity to select the other option(s).

Ex. When you buy an older car with low mileage but no aux port, the opportunity to listen to your own music is lost.

Value has 2 parts _______ and ________.

(two words)

Answer explanation

It may be helpful to think of it this way:

benefits - cost = value

The value of a product is determined by what benefits it gives you minus the cost of the product.

To make the best economic decision what do you need to

consider for all decisions?

• The benefits and cost

• Longevity and durability of the options

• The likelihood of being able to change your mind in the future

• Your comfort level after making the decision