Chapter 19: The American Economy

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.