Transcript Based on the “Keys to Wise Consuming”

D71
Marvelous Monday
December 7
This week on the
Web…
Chapter 18, Section 3; pages 491-497
Based on the “Keys to Wise Consuming” (491-493), are
you a wise consumer?
In a paragraph of 10 sentences, (no more, no less),
answer this question. Refer to the textbook if you need
to.
I will collect
this!
The Better Business Bureau (BBB)
• Nonprofit organizations are not just limited to co-ops
and civic groups. Many other groups also organize
to promote the interests of their members. For
example, the Better Business Bureau (BBB) helps
protect the consumer. The BBB is a nonprofit
organization sponsored by local businesses to
provide general information on companies. It
maintains records on consumer inquiries and
complaints and sometimes offers various consumer
education programs.
Federal Agencies that protect you and me
• The Consumer Product Safety Commission is
responsible for consumer product safety. In 1972,
Congress passed the Consumer Product Safety Act,
which gave the CPSC powers to protect individuals
from unsafe consumer products. They accomplish
this task through evaluating the safety of consumer
products, developing standards, and conducting
research as it pertains to safety. For example, the
CPSC recently issued a recall on folding lounge
chairs because consumers have reported falls when
using them.
Federal Trade Commission (FTC)
• The FTC was initially created in 1914 as an agency
that wielded a weapon against antitrust. Eventually,
the commission's powers were enlarged to also
protect consumers against false advertising and
fraud. There are many specific areas that the FTC has
targeted in respect to the protection of the public. For
example, the most recent areas of concern have
been towards businesses advertising to children. The
FTC was able to fine a large technology company $19
million for unfairly billing parents for their children's
authorized app purchases.
Security Exchange Commission
• The SEC was established by Congress to protect
consumers. The purpose of the SEC is to regulate the
securities markets and provide full public disclosure
of financial information to protect investors against
fraudulent and manipulative practices in the
securities markets (stock investments). For example,
the SEC will take legal action against companies,
such as credit card companies or banks that credit a
consumer's account with payments that the
consumer submitted on time and then charge late
fees to the consumer.
North Carolina’s Attorney General
• Attorney General is part of the Justice Department for both federal and
state governments.
• The Attorney General is in charge of the state’s legal business or matters
concerning the law.
• He or she provides state officials with advice about the meaning of laws.
• The AG or an assistant represents the state in court when the state is
involved in a lawsuit.
• The AG may also assist local officials in the prosecution of criminals.
North Carolina’s Attorney General continued
• Attorney General Roy Cooper works to protect North Carolina consumers
from scams and frauds. Cooper and his Consumer Protection Division have
helped hundreds of thousands of consumers like you get more than $100
million of your money back, and have helped win $250 million in savings
on your utility rates.
• Signing up for the Do Not Call Registry gives you the right to decide who
calls you at home.
Today’s topic: The Business Cycle
• What do you think of when you hear economic terms in the news such as
depression, inflation, and recession?
• These terms are all related to stages that the economy goes through.
• Sometimes the economy is very strong and other times it weakens.
Write today’s EQ.
What is the business
cycle, and what
causes it to fluctuate?
What is a business cycle?
Refers to when the
economy goes through
periods of uneven
growth
What was the worst point in the business
cycle that the US has ever experienced?
The Great Depression
Why should you know something
about the business cycle?
Depending on which stage of the business
cycle the economy is in will impact how you
use your money. (saving, spending,
investing)
Focus Questions, Section 1
1. What is a business
cycle?
• This describes the economy when
the economy is good, then turns
bad, then returns to good again.
2. What are the
different parts of the
business cycle?
• Expansion, inflation, peak,
contraction, recession, trough,
depression
Stop & draw and label
the “business cycle”
diagram on page
535 in your NB.
The Business Cycle
Be prepared to share
your statements with the
class!
• With a partner, write statements
to help you remember the
meaning of the following terms:
1.
The economy is booming.
2.
Prices are high.
3.
Expansion & inflation stop.
4.
An economic slowdown
5.
Businesses fail, people lose jobs,
profits fall
6. Trough
6.
The economy reaches its lowest
point.
7. Depression
7.
The economy continues to
perform poorly, evidenced
by high unemployment.
1. Expansion
2. Inflation
3. Peak
4. Contraction
5. Recession
TB
PAGE
535
GDP = Gross Domestic
Product = the total amount
of goods and services
produced by the country in
one year
Handout: Calculating GDP
The Business Cycle
1.
Recession
2.
Depression
3.
peak
Refers to a general increase in
the price of goods & services
4.
Inflation
The GDP increases
5.
expansion
1.
Occurs if the contraction is
severe enough.
2.
Occurs when the trough is
extremely low.
3.
The business cycle reaches a
high point.
4.
5.
The Business Cycle
6.
A period of growth
• Expansion
7.
When expansion & inflation stop
• Peak
8.
People are unemployed, can’t
buy goods, businesses close
• Depression
9.
An economic slowdown
10. Occurs as customers compete
with each other to buy goods &
services
• Recession
• inflation