Chapter 19: The American Economy


Consumer Bill of Rights (JFK and Nixon)



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Consumer Bill of Rights (JFK and Nixon)

  • Consumer Bill of Rights (JFK and Nixon)
  • -Emphasized five major rights of Consumers:
  • 1. The right to have a safe product.
  • 2. The right to be informed.
  • 3. The right to choose.
  • 4. The right to be heard.
  • 5. The right to redress – the ability to obtain from the manufacturers adequate payment if their product causes financial or physical damage.

Consumer Responsibilities

  • Consumer Responsibilities
  • *Warranty- the promise made by a manufacturer or seller to repair or replace a product within a certain time period if it is faulty.
  • *Ethical behavior by respecting the rights of producers and sellers.

Uses of Income

  • Uses of Income
  • *Disposable income- is the money income a person has left after all the taxes on it have been paid.
  • -Paycheck
  • *Discretionary Income- is money left over after paying for necessities that can be used for satisfying wants, including luxury items or savings accounts.

Decision Making- most decisions involve an opportunity cost.

  • Decision Making- most decisions involve an opportunity cost.
  • -What are your goals? - Spend now or later? - Save for the future?
  • *Savings- is to set aside a portion of income for a period of time so that it can be used later.
  • *Interest- is the payment people receive when they lend money or allow someone else to use their money.

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