What Are We Learning Today?

1. What Are We Learning Today? 9.2.4. What is the role of the consumer in market and mixed economies?

2. Consumerism • Consumerism is an economic theory that says the more people buy, the better it is for the economy. • In economies based on consumerism, consumer spending plays an important role in economic decision making. https://www.youtube.com/watch?v=hGaOQKJik-s

3. Identity • The choices we make as consumers can reflect our identity. • Critical thinking challenge pg. 244.

4. Marketing • Marketing & Did You Know? pg. 254. • How to Analyze Advertising pg. 255.

5. How to Analyze Advertising Bandwagon Effect • Encourages you to buy a product or service because everyoneelse is. • http://www.youtube.com/watch?v=6BW5VTyqKrw Emotional Appeal • Uses strong emotional language that connects with your fears and emotions. • http://www.youtube.com/watch?v=I4kNl7cQdcU

6. Glittering Generalities • Relates the product or service to words or images that promise everything but deliver little or nothing. • http://www.youtube.com/watch?v=p8RCfMDG3bA&feature=related Plain Folks Appeal • Relates a product or service to the experience of ordinary folks. • http://www.youtube.com/watch?v=TqHSIiAXdSU

7. Testimonials • Uses celebrities or experts to speak for a product. • http://www.youtube.com/watch?v=b0AGiq9j_Ak Scientific Appeal • Uses statistics or scientific appeal to persuade consumers to buy a product or service. • http://www.youtube.com/watch?v=B8BeGgT1v5M

8. Other Commercials • http://www.youtube.com/watch?v=Z3aP5Ks7e1s • http://www.youtube.com/watch?v=GDcWRUtrVuc • http://www.youtube.com/watch?v=Xo9pFniB8aQ • http://www.youtube.com/watch?v=5wqvC_E0zI8

9. Jobs • When you take a product, you connect to a chain of ppl and their jobs. Your choice is part of what keeps them employed. • Ballpoint pen pg. 250.

10. Measures of Economic Growth • Economic growth is the degree to which a country’s wealth increases over a period of time (usually a year). Measures of economic growth include: • How much profit a country’s economy makes from the goods and services it produces. • How many ppl have jobs and are making an income.

11. Environment • Your choices as a consumer also impacts the air, water, and land that you share with everybody. • What is your pen made of? pg. 252.

12. Legislation about Consumerism and the Environment • Canada and the US have laws and programs related to consumer demand and the environment. For example: • Both gov’ts have banned leaded gasoline, because of the harmful effects of lead on human health and the environment. • Consumers shopping for new appliances in both Canada and the US can identity energy-efficient options because of gov’t programs that label these appliances.

13. Kennecott Mine • http://www.youtube.com/watch?v=P9Df0_-OxDc • Pg. 253. • Cartoons about Consumerism pg. 256.

14. Health & Safety • Federal law requires warnings on products such as cigarettes to discourage consumers from buying them. As the warnings tell you, smoking can lead to cancer and heart disease. Despite the warnings, however, adults can still buy cigarettes. • Some gov’ts in Canada have gone further. They have banned some products and made them unavailable to consumers.

16. Legislation about Consumer Health & Safety • Consumer health and safety is the focus of legislation in both Canada & the US – or the focus of debates about it. For example: • Both Canada & the US have product-labelling laws that require producers to list the ingredients in food and cosmetics. • The US has laws making airbags mandatory in cars, along with seat belts. In 2007, Canada’s laws made only seat belts mandatory.

17. Homework • Read “Schools ban junk food” and “Calgary eateries reduce trans fats” on pg. 248-249. • Answer the following questions: • How might a ban on junk food or trans fats affect demand for food products? How might it affect producers who supply junk food to schools or foods with trans fats to restaurants? • Why might Canadians have different views about decisions to ban some products? • How much control should consumers have over choices that affect their health and safety?

18. What’s GDP? • Gross Domestic Product (GDP) measures the amount of _____ a country’s economy _________. The term per capita means “average per person.” So, GDP per capita is a way to estimate how well off ppl are in a country. Exact Figures GDP per capita (2007) - Canada $33,000 - Mexico $12,500 - US $46,000 • GDP Per Capita pg. 261

19. Boycotts • A boycott is a decision by consumers to stop buying a product or service as a way to bring about change. • A boycott usually has a moral or ethical reason behind it.

20. Quality of Life • Your quality of life is a measure of your personal and collective well-being (how happy you are.) Things that measure QOL include education, health, safety, and income. However, just because you have these DOES NOT necessarily mean you’ll be happier. • In general, a person’s quality of life is related to their level of consumption. The more money you have to spend on things you need and want, the happier you usually are.

21. Quality of Life & Consumerism • Your QOL influences the choices you make as a consumer while the choices you make as a consumer can influence your QOL. They work BOTH ways. • The choices you make as a consumer can also impact the QOL of others. For example, your consumer decisions can create employment for others (a positive), or hurt everyone’s enjoyment of the environment (a negative).