Splash Screen

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Splash Screen
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Chapter Menu
Chapter Introduction Section 1 Shopping for
Food Section 2 Clothing Choices Section 3 To
Rent or to Buy Section 4 Buying and Operating a
Vehicle Visual Summary
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Chapter Intro 1
Scarcity is the basic economic problem that
requires people to make choices about how to use
limited resources.
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Chapter Intro 2
What are the costs of owning a car? How much
should you budget for clothes and food? In this
chapter, read to learn how to shop wisely for the
necessities.
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Chapter Preview-End
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Section 1-Main Idea
Section Preview In this section, you will learn
about a variety of ways to save when shopping for
food.
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Section 1-Key Terms
Content Vocabulary

• club warehouse store
• convenience store
• private-labeled products

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Section 1-Key Terms
Academic Vocabulary

• potential
• regional

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Section 1-Polling Question
Do you feel that food is expensive?
A. Always B. Sometimes C. Never

1. A
2. B
3. C

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Section 1
Comparison Shopping
Shopping for food involves many considerations,
including brands, sizes, quantities, unit prices,
freshness, the availability of coupons and store
location.
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Section 1
Comparison Shopping (cont.)

• When comparison shopping, you need to decide not
  only what to shop for but where to shop as well.

• If you spend too much time looking around though,
  the additional costs of time and transportation
  would outweigh any potential savings.

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Section 1
Do you tend to spend much time shopping around
for items? A. Always B. Sometimes C. Never

1. A
2. B
3. C

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Section 1
Trade-Offs in Stores
Deciding what food to buy involves numerous
trade-offs.
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Section 1
Trade-Offs in Stores (cont.)

• Food shopping is typically done at grocery stores
  or in club warehouse stores which offer the
  largest potential savings for your food dollar
  because you purchase in bulk.

• Occasionally, you may use a convenience store
  which carries a limited selection of brand items
  at relatively higher prices.

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Section 1
Trade-Offs in Stores (cont.)

• When you shop, alternatives to brand named items
  are private-labeled products which are
  lower-priced products carried by supermarket and
  warehouse chains.

• There is a trade-off between quality and price in
  the products you buy.
• Also, the larger the quantity of any item you
  buy, the lower the per-unit price.

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Section 1
Trade-Offs in Stores (cont.)

• Many manufacturers give cents-off coupons, but
  you have to decide if the amount you save using
  them is worth your time collecting and matching
  them.

• Store discount cards are another option, but
  critics claim that they simply save the customer
  from inflated prices instead of offering a
  discount.
• These cards are also used to track customers
  spending habits for marketing purposes.

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Section 1
Do you feel that marketing companies should be
allowed to study customers shopping
habits? A. Always B. Sometimes C. Never

1. A
2. B
3. C

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Section 1-End
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Section 2-Main Idea
Section Preview In this section, you will learn
methods to help you make wise consumer choices
when shopping for clothes.
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Section 2-Key Terms
Content Vocabulary

• durability
• service flow

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Section 2-Objectives
Academic Vocabulary

• factor
• equivalent

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Section 2-Polling Question
What is your motivating factor when buying
clothes? A. Durability B. Variety C. Brand D. Sty
le E. Cost of care

1. A
2. B
3. C
4. D
5. E

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Section 2
Comparing Clothing Value
Clothing value depends on style, durability, and
cost of care, as well as purchase price.
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Section 2
Comparing Clothing Value (cont.)

• Comparison shopping is important to buying
  clothing wisely. Clothing value depends on three
  factors

• Style or the latest trend
• The durability of an item which includes its
  service flow.
• Cost of care is the money and effort you put into
  maintaining the item like dry cleaning.

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Section 2
Do you feel that buying clothes that must be dry
cleaned is worthwhile? A. Always
B. Sometimes C. Never

1. A
2. B
3. C

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Section 2
More for Less
Consumers have many alternatives to buying
clothing at full retail price.
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Section 2
More for Less (cont.)

• Ways to save when buying clothing

• Visit a consignment store which sells used
  clothing at lower prices.
• Buy clothing on sale.
• Shop online.
• Make a list of clothing you really need so you
  dont buy impulsively.

View How Can You Save on Clothes?
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Section 2
The cost of clothing has increased significantly
over the years. A. True B. False

1. A
2. B

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Section 2-End
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Section 3-Main Idea
Section Preview In this section, you will
discover the costs and responsibilities involved
in both renting and buying a place to live.
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Section 3-Key Terms
Content Vocabulary

• lease
• security deposit
• closing costs
• points

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Section 3-Objectives
Academic Vocabulary

• obtain
• involve

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Section 3-Polling Question
Do you think that you would want to rent or buy a
house? A. Rent B. Buy

1. A
2. B

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Section 3
Should You Rent or Buy?
There are advantages and disadvantages both to
buying a home and renting a place to live.
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Section 3
Should You Rent or Buy? (cont.)

• Benefits to renting

• No down payment (only a security deposit and one
  or two months rent up front)
• No maintenance costs or real estate taxes
• Greater mobility

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Section 3
Should You Rent or Buy? (cont.)

• Benefits to buying

• Significant income tax benefits
• The owner builds equity. Houses generally
  appreciate, or go up in value over the years.
• Pride of ownership
• Freedom to decorate or remodel

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Section 3
How much of their income does the average
American family spend on a house? A. 2533
B. 3450 C. 510 D. 1124

1. A
2. B
3. C
4. D

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Section 3
Renter Rights and Responsibilities
Renters should read their leases carefully to
understand their rights and responsibilities.
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Section 3
Renter Rights and Responsibilities (cont.)

• Renters are asked to sign a lease or agreement
  describing the terms of the rental property.

• They are generally required to pay a security
  deposit which is equal to one months rent.

• This is returned after the tenant has moved out,
  depending on the condition of the apartment and
  all rent was paid.

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Section 3
Renter Rights and Responsibilities (cont.)

• Rights of tenants

• To use the property for the purpose stated in the
  lease.
• To have a certain amount of privacy.

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Section 3
Renter Rights and Responsibilities (cont.)

• Responsibilities of tenants

• Paying the rent on time
• Taking good care of the property
• Notifying the landlord of needed repairs
• Giving notice or a formal warning, if he or she
  plans to move before the term of the lease is up

View Before You Sign
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Section 3
Renter Rights and Responsibilities (cont.)

• Responsibilities of landlords

• They must make sure that their apartments have
  certain minimum services.
• They must obey building safety laws.
• They must make repairs within a reasonable amount
  of time.

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Section 3
What might happen if you need to move
early? A. You cannot leave early. B. The
landlord keeps your furniture. C. You might owe
several months rent immediately. D. You must
find someone else to rent it.

1. A
2. B
3. C
4. D

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Section 3
Purchasing a House
Potential home buyers need to consider many
different costs before deciding to purchase a
house.
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Section 3
Purchasing a House (cont.)

• One of the major challenges facing a home buyer
  is obtaining the mortgage.

• The mortgage will then be repaid in monthly
  installments that include interest on the loan.
• In addition to the down payment, you will need
  funds for the closing costs which are fees
  related to transferring ownership of the property.

View The Cost of Ownership
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Section 3
Purchasing a House (cont.)

• You should also become knowledgeable about points
  which are fees paid to a lender and computed as a
  percentage of the loan.

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Section 3
When do lenders charge points? A. Always
B. When the current interest rate is not
high enough C. When the current interest
rate is too high D. When the house is expensive

1. A
2. B
3. C
4. D

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Section 3-End
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Section 4-Main Idea
Section Preview In this section, you will learn
how to go about buying and operating a vehicle,
along with the costs involved.
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Section 4-Key Terms
Content Vocabulary

• registration fee
• liability insurance

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Section 4-Objectives
Academic Vocabulary

• period
• status

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Section 4-Polling Question
Do you feel that deciding which type of car to
buy would be complicated? A. Yes B. No C. Maybe

1. A
2. B
3. C

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Section 4
Buying a Car
Buying a car involves comparing many variables,
such as the initial purchase prices, repair
histories, warranties, and styles of different
makes and models.
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Section 4
Buying a Car (cont.)

• Considerations

• The amount of money and time spent shopping for
  the car.
• The amount of money and time spent purchasing the
  car.
• New or used?

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Section 4
Buying a Car (cont.)

• Every owner must pay a state licensing or
  registration fee.

• Some people buy an extended warranty to protect
  owners for all major repairs except tune-ups and
  damage resulting from improper use of the car.

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Section 4
Which consideration would be the most important
to you when buying a car? A. Safety B. Fuel
efficiency C. Price D. Make/model

1. A
2. B
3. C
4. D

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Section 4
Operating a Car
Operating a car is expensive, involving the costs
of gasoline, routine maintenance, major repairs,
depreciation, and insurance.
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Section 4
Operating a Car (cont.)

• The amount of normal maintenance depends on the
  amount the car is driven and how carefully the
  owner maintains the car.

• Check the repair records of different cars before
  deciding on a particular make and model.
• Take a used car to a diagnostic center, or have a
  mechanic check it before purchasing.

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Section 4
Operating a Car (cont.)

• All durable goods depreciate or decline in value
  over time.

• Causes

• A car loses value every year even if it is not
  driven because it is a durable good.
• The technology and features of new makes and
  models make older models obsolete.
• Physical wear and tear.

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Section 4
Operating a Car (cont.)

• Everyone who drives must carry auto insurance.

• Liability insurance pays for bodily injury and
  property damage if in an accident.

View How Car Insurance Rates Are Set
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Section 4
Operating a Car (cont.)

• Insurance companies classify drivers according to

• Age
• Gender
• Marital status
• The type of car you drive
• Where you drive
• What you use the car for

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Section 4
Operating a Car (cont.)

• Safety record

• Grades
• Number of drivers

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Section 4
Which driver would pay the most insurance? A. A
married man in the city B. A teenager in the
city C. A straight-A student in the country
D. A woman who drives a sports car

1. A
2. B
3. C
4. D

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Section 4-End
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VS 1
When buying any necessities, including food and
clothing, there is often a trade-off between
quality and price.
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VS 2
When deciding whether to rent or buy a home, you
should consider the advantages of each option.
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VS 3
When buying a car, you will have many trade-offs
to consider before deciding what type of vehicle
is best for you.
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VS-End
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Figure 1
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Figure 2
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Figure 3
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Figure 4
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DFS Trans 1
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DFS Trans 2
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DFS Trans 3
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DFS Trans 4
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Vocab1
club warehouse store store that carries a
limited number of brands and items in large
quantities and is less expensive than grocery
stores
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Vocab2
convenience store store open 16 to 24 hours a
day, carrying a limited selection of relatively
higher-priced items
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Vocab3
private-labeled products lower-priced
store-brand products carried by some supermarket
chains and club warehouse chains
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Vocab4
durability ability of an item to last a long time
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Vocab5
service flow amount of use a person gets from an
item over time and the value a person places on
this use
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Vocab6
lease long-term agreement describing the terms
under which property is rented
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Vocab7
security deposit funds a renter lets an owner
hold in case the rent is not paid or the
apartment is damaged
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Vocab8
closing costs fees involved in arranging for a
mortgage or in transferring ownership of property
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Vocab9
points fees paid to a lender and computed as a
percentage of a loan
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Vocab10
registration fee licensing fee, usually annual,
paid to a state for the right to use a car
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Vocab11
liability insurance insurance that pays for
bodily injury and property damage
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