Consumers Questions and answers

Explain the difference between simple interest and compound interest.

Simple Interest: Interest is calculated only on the original principal amount of a loan or investment. The interest amount remains the same over the entire period. Compound Interest: Interest is calculated on the principal amount and on the accumulated interest from previous periods. This means the amount of interest earned or paid grows over time.

Differentiate between a legal multi-level marketing scheme and an illegal pyramid scheme.

Multi-level Marketing (Legal): This is a legal business model where individuals sell products to the public. Members earn compensation based on the volume of products they sell

What are common warning signs that indicate an online offer or advertisement may be a scam?

Requests for Sensitive Information: Scammers often ask for personal details such as banking information or certified copies of your ID

Describe the impact that significant and rapid increases in fuel prices have on a consumer's ability to satisfy their basic needs.

Significant increases in fuel prices trigger a chain reaction that directly impacts a household's financial stability and ability to meet basic needs: Increased Transport Costs: The immediate effect is higher costs for commuting to work or school

Discuss what municipalities can do to reduce crime and make communities safer.

Municipalities have a responsibility to provide and maintain public infrastructure and services that contribute to community safety. Key actions include: Provide Adequate Street Lighting: Well-lit areas deter criminal activity and help residents feel safer at night. Maintain Public Spaces: Regularly cutting overgrown trees and bushes eliminates potential hiding spots for criminals. Ensure Effective Refuse Removal: Consistent rubbish collection prevents the buildup of waste that can create unhealthy conditions or provide cover for illegal activities. Repair and Maintain Roads: Fixing potholes and ensuring roads are in good condition helps prevent accidents. Secure Infrastructure: Ensuring that storm water drains and manholes are properly covered prevents accidents and injuries. Provide Emergency Services: Operating effective firefighting and disaster management services is crucial for public safety. Enforce Traffic Laws: Deploying traffic police helps maintain order on the roads and enhances safety for motorists and pedestrians.

How does arteriosclerosis develop

and what is its relationship with cholesterol?

Explain the dietary causes of hypertension (high blood pressure).

Several key dietary factors can contribute to the development of hypertension: An excessive intake of salt (sodium). Being overweight or obese

Compare the eating disorders anorexia nervosa and bulimia nervosa based on their distinct eating habits.

Anorexia Nervosa: This disorder is characterized by a severe restriction of food intake. Individuals intentionally starve themselves

Discuss how genetically modified (GM) foods can contribute to food security.

Genetically modified foods can enhance food security in several critical ways: Increased Crop Resistance: GM crops can be engineered to be resistant to diseases

In what ways does food irradiation increase the shelf life of food products?

Food irradiation

Explain the difference between a classic fashion and a fashion fad.

Classic Fashion: A classic is a style that is timeless and remains popular over a long period

What is the concept of retrospective fashion?

Retrospective fashion is a style that draws inspiration from the past. Designers look to previous eras for ideas and then reinterpret those historical styles with a modern twist to create new

Explain how reusing or purchasing second-hand clothing items contributes to a more sustainable environment.

Reusing and buying second-hand clothing promotes environmental sustainability in several important ways: Reduces Resource Consumption: It decreases the demand for new clothing production

What is brand piracy in the context of clothing?

Brand piracy is the illegal copying and selling of counterfeit clothing items. It involves the unauthorized use of a well-known brand's name

Explain the main differences between full-title ownership and sectional-title ownership.

Full-Title Ownership: The buyer becomes the legal owner of the entire property

What are the financial responsibilities of a landlord who is renting out a property?

A landlord has several key financial obligations related to their rental property: Paying the monthly bond repayments to the bank. Paying municipal rates and taxes. Paying for homeowner's insurance to cover the structure of the property. Paying for any mortgage protection insurance required by the lender. Covering the costs of general maintenance and repairs to the property.

What are the financial disadvantages of building a new house?

Building a new house can present several financial challenges and risks: Construction Delays: Unexpected delays due to weather

What expenses are typically covered by the monthly levy paid by a sectional-title unit owner?

The monthly levy paid by owners in a sectional-title scheme is used by the body corporate to cover the costs of managing and maintaining the common property. These expenses typically include: Wages and salaries for complex staff (e.g.

What is the purpose of conducting a financial feasibility study before starting a business?

A financial feasibility study is a critical planning tool that helps an entrepreneur determine if a business idea is viable and has the potential for success. Its main purposes are: To assess whether the business can be profitable by projecting potential revenues against total costs. To calculate the amount of start-up capital required to launch the business. To identify potential financial weaknesses or strengths in the business concept. To provide objective data to help the entrepreneur decide whether to proceed with

Explain the importance of regular maintenance of business equipment.

Regular and routine maintenance of equipment is crucial for the smooth operation and long-term success of a business. The key benefits include: Prevents Breakdowns: It helps to identify and fix minor issues before they become major problems

Discuss the advantages of using local raw materials for a small-scale business.

Sourcing raw materials locally offers several strategic advantages for a small-scale business: Reduces Transport Costs: Purchasing materials from nearby suppliers significantly lowers transportation expenses

Explain how the quality of raw materials can impact the quality and price of a final product.

The quality of raw materials is directly linked to the final product's quality and its market value: Impact on Product Quality: High-quality raw materials are essential for producing a high-quality final product. Conversely

How can a business demonstrate that it is a responsible producer and reduce its carbon footprint?

A business can adopt several sustainable and responsible practices to minimize its environmental impact: Use Local Raw Materials: This reduces transportation distances and associated carbon emissions. Adopt Renewable Energy: Installing solar panels or using other forms of green energy can significantly reduce reliance on fossil fuels. Implement Recycling Programs: Recycling waste materials like paper