economics

4. CONSUMPTION

5. Each member of society , whether
he belongs to a household, a firm, or
the government, is a buyer or
consumer.
The food we eat, clothes we wear,
and the gadgets and things we use at
school are some of the items we
consume.

6. Consumption
A way to satisfy the needs
and wants of an individual.
Always comes at the
expense of using whatever
resources are remaining.

7. Consumption Function
A model used to study the
relationship between the level of
income and level of consumption in a
country.
Based on the consumption function,
the level of total consumption in an
economy is primarily affected by the
level of total income and other factors.

9. Price Changes
The changing price of a
good affect its level of
consumption in a major
way.

10. Income and Wealth
The level of income and amount of
accrued wealth of a household or an
individual play a major role in its level of
consumption.
If the prices of goods and services
change, as an individual’s level of income
and wealth can keep up with price
changes, his consumption will not
necessarily change.

11. Household Preferences
Every individual has his
own personal preferences
and his consumption will
depend on the preference of
a household or society.

12. Expectations
The expectations of a household for the
future that have to do with prices of goods,
income, and social status.
If incomes are expected to increase in the
future, consumption at present may be
affected.
People’s expectation regarding events in
their surroundings can also affect their
consumption to the extent that they dictate and
change the preferences of consumers.

13. Size of Population
As population increases, consumption
also increases to keep up with population
growth.
Consumption is related to the level of
income and population size.
It is possible that a country with a
smaller population has a high level of
consumption because the people have
higher incomes.

15. Republic Act 7394
Consumer Act of the Philippines
Law exist to protect and uphold
the interests of consumers.
It also promotes the abilities that
every consumer should have.

16. The law establishes
the standards that
should be followed in
forming and operating
businesses and
industry.

17. a. Safety and protection of buyers
and consumers from dangers to
health and security.
b. Protection from deceptive and
unfair business practices related
to the operation of businesses
and industry

18. c. Opportunities to listen to the
complaints and grievances of
buyers
d. Representation of consumers’
association in shaping the
framework of and forming
policies that govern business
and society.

20. The Department of Trade and
Industry (DTI) laid down the eight
rights of consumers to guide them
in their market transactions.
DTI is the government agency
tasked with protecting the rights of
the consumer.

21. 1.Right to basic needs
Every consumer has the
right to have sufficient
food, clothes, housing,
health needs, education,
and hygiene in order to
live.

22. 2. Right to safety
Every consumer has the
right to full safety and
protection from products
that are harmful or
dangerous to health.

23. 3. Right to information
Every consumer has the right to be
protected from deceptive, dishonest,
and misleading information, fake
labels, ad other improper and unjust
practices. Consumers have a right to
know these so that they will not be
abused by others.

24. 4. Right to choose
Every consumer has the right
to choose different products and
services at affordable prices. If the
good or service is monopolized by
a private company, it should have
quality and a fair price.

25. 5. Right to be heard
Every consumer has the
right to be assured that his or
her welfare is taken into
account by the government
when the latter makes and
implements policies.

26. 6. Right to compensation in case of
damage
Every consumer has the right to be
paid and compensated in kind for any
damage or harm caused by a product that
one bought. A consumer has the right to
be paid for any lies or poor quality of a
good or service that is being sold or
offered whether it was a mistake, or the
result of negligence or malicious intent.

27. 7. Right to be educated on how to
become an intelligent consumer
Everybody has a right to consumer
education. This includes the right to
intelligence and knowledge necessary
to take the right steps that will help in
making consumption decisions.

28. 8. Right to a clean environment
Every buyer has the right to
freedom equality, and sufficient
conditions in life that allow for dignity
and well-being of an individual. You
have a big responsibility to take care of
and improve your environment for the
health and future of our race.

29. Five
Duties of
a

30. 1. Critical Awareness
 The duty to be aware and
questioning regarding the
purpose, cost, and quality of
goods and services that we
use

31. 2. Action
The duty to assert ourselves and
to act in order to be assured of fair
dealing. If we continue to be
negligent, we will always be
exploited or abused by dishonest
businessmen.

32. 3. Concern for society
The duty to know the effects of
our consumption of goods and
services on other citizens,
especially minority groups or
powerless groups, whether they
are local, national, or global
communities.

33. 4. Environmental awareness
The duty to understand the
consequences on our environment
brought about by improper
consumption. We should protect
and take care of our natural
resources to ensure a bright future.

34. 5. Unity
The duty to organize
together as consumers in
order to have the strength
and the power to promote
and protect our welfare.