Consumer Economics CH 2

August 2026

needs

things you must have in order to live

priorities

your judgements about the relative importance of alternatives

wants

things you desire but that are not necessary to live

values

strongly held beliefs and prinicples about what is worthwhile

standards

established levels of quality or quantity to measure against.

goals

targets for what you want to accomplish

family life cycle

series of stages throug which a family passes

resources

anything that is useful or helpful in the process of achieving goals or solving problems

scarcity

because of limited resources, an economic system can’t possibly produce all the goods and services that people want

bartering

exchanging goods or services with another person

opportunity cost

deciding to use resources one way rather than other

management

the process of using resources effectively to reach goals

procastronate

putting off taking action

impulse purchasing

purchase without planning

status symbols

possessions or activities by which social or economic prestige is measured

fads

interests, products, or styles that people take up with exaggerated enthusiasm for a brief time

conspicuous consumption

purchasing goods or services to impress others

bias

preference that might prevent impartial judgement

credentials

licenses, certifications or degrees that indicate knowledge, and experience in a certain subject area