knowledge
Consuming goods, services and amusements can satisfy the economic demand.
application
Brainstorm different kinds of demands and list the goods, services and amusements needed to satisfy them.
knowledge
People can never obtain anything, so they need to choose from goods and services, which means they are required to get their priorities right.
application
Make a list of goods and services supposed that you have only a limited budget. Please order your list in terms of importance and elaborate on your priorities.
knowledge
Spending money can increase one’s happiness and satisfaction.
application
Explain why different people have different ways of going on holiday when they have similar budgets.
knowledge
Whatever people buy, there will be an opportunity cost, the value of the most valuable choice out of those that were not taken.
application
Find an example of a purchase decision, and identify its opportunity cost.
knowledge
Rational decisions are made by comparing the costs and benefits between choices. Cost is what decision makers give up and benefit is what they get.
application
Compare the differences when it comes to buying a bicycle between people living in an urban area and those in a rural area, and between the elderly and the young.
knowledge
Price is among the factors that affects people’s purchase decisions, which also include ads, other options and peer pressure.
application
Write a story on how people make purchase decisions under the influence of ads, other options, prices, and peer pressure. Explain why a shopping list is of great help in moderate consumption.
knowledge
Making a plan can help make rational buying decisions. A budget is a plan on consumption, savings and income management.
application
Make a budget for your pocket money and list your consumptions and savings.