Economics: Today and Tomorrow © 2012Chapter 3:
Your Role as a ConsumerChapter OverviewsSection 1: Consumption, Income, and Decision Making
A consumer is a person or group that buys or uses goods and services to satisfy personal needs and wants. After people pay taxes, their remaining income may be saved or spent on essential or nonessential items. Disposable income is the money left over after all taxes have been paid. Discretionary income is the money left over after necessities such as food and housing have been paid for. Discretionary income may be saved or spent on luxury items or entertainment. Consumer decisions involve comparing available alternatives. Section 2: Buying Principles and Strategies
Three basic buying principles can help consumers make wise purchases: gather information, use advertising wisely, and comparison shop. Before making a purchase, consumers should be well-informed and carefully consider advertisers’ claims. Section 3: Consumerism
Consumerism is a movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers. Many government agencies and private groups work to ensure the well-being of consumers. Consumers have both rights and responsibilities.  | 
