Economics Today and Tomorrow

Chapter 5: Buying the Necessities

Chapter Overviews

When buying the necessities, consumers need to know how to get the most for the money and time that they spend. Trade-offs and opportunity costs will exist, and they must be considered when shopping. Understanding the factors that affect value when shopping for food, clothing, housing, and transportation is the focus of Chapter 5.

Comparison Shopping
Comparison food shopping, as discussed in this chapter, provides information about sales, cents-off coupons, price variations among stores, and generic and private labels versus national brands. The chapter also points out the decisions that consumers need to make when shopping for clothing, discusses the factors involved in clothing choice, and explains why comparing clothing value depends on more than just price.

Buying vs. Renting
Besides food and clothing, housing is an important necessity in everybody's budget. This chapter considers the decision of whether to rent or buy housing and explores the economic and psychological advantages and disadvantages of both. The characteristics of several types of mortgages available to buyers are explained. Rights and responsibilities of both tenants and landlords are discussed, including the types of clauses that renters are likely to encounter when signing a lease.

Vehicle Purchases
In consideration of transportation, the last necessity, the chapter lists and explains the costs of operating a vehicle. Also provided is a checklist for the consumer who is considering buying a vehicle.