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level: Level 1

Questions and Answers List

level questions: Level 1

QuestionAnswer
a need is something we simply cannot do without. it is essential for our survivalwhat is a need
a want is something that we would like to have. it may improve our life but it is not essential for our survival.want
a resource is anything that we can use in order to meet our needs or achieve our goalswhat is a resource
physical/capital resources, natural resources, financial resources, human resources, time resourcestypes of resources
goods that are made by people, eg. vehicles, booksphysical/capital resources
resources provided by nature, eg. land, waternatural resources
all types and sources of money, eg. savings, employment income.financial resources
all your skills, abilities and experience, eg. an ability to read/write, creativityhuman resources
most limited resource, cannot earn, borrow or buy more time, valuable resourcetime resources
priority spendinghow do you make use of financial resources
financial cost and opportunity cost.what are the two costs when you buy something
'next best thing' is the benefit, profit or value of something that must be given up in order to get something elseopportunity cost
income refers to the money coming into a person or household. it also refers to all of the money received over a period of timewhat is income
wages, salaries, pensions, benefits, dividends, interest on savings, windfallmost common sources of household income
BIK household does not receive any cash but is provided with goods or services that have a money valuebenefits in kind
incomes such as wages, salaries, child benefits, pension which are received every week or monthregular income
additional income received for working extra hours, or as a reward for meeting certain targets or windfall. the timing and amount of these income sources are less predictable and cannot be guaranteedirregular income
fixed annual payment made to an employee as a reward for worksalary
payment received for work donewage
time rate, overtime pay, piece rat, commission, bonus pay,different methods of calculating wage
amount earned before any additional paymentbasic pay
the entire amount of income before any deductions are madegross pay
employees income after all deductions are taken from gross paynet pay
statutory voluntaryname two types of deductions
pay as you earn tax is levied on the income as it is earned and is deducted at sourcepaye
public relations social insurance provides them with benefit entitlement should they require them. eg. pensionprsi ireland tax
universal social charge applies to all workers whose income exceeds a certain limitusc
extra money deducted for pensions, savings, trade unionvoluntary deductions
income that remains when all income taxes and compulsory payments have been made. some of it will be required for essential spendingdisposable income
the income left over after taxes and essential spending is called discretionary incomediscretionary income meaning
refers to the way people choose to spend their moneyexpenditure
important items of expenditure that involve the same amount of money being spent on a regular basis, mortgage repayments or rent etcfixed expenditure
occur on a less regular basis and amounts tend to vary with usage for example groceries or clothingirregular expenditure
spending on non essential items that we choose to buy, satisfies our wants for eg. entertainment, holidaysdiscretionary expenditure
continuous and regularcurrent expenditure
far less regular and will generally not be repeated for a long time E.G a laptop or tvcapital expenditure
prepare budget, prioritize expenditure, false economies, opportunity cost , impulse buying, check billseffective spending
is a purchase that initially appears to be good value for money but in the longer term turns out to be more expensivefalse economy
reflects a series of stages that a person goes through throughout their life and helps a person adjust their financial needs at each stage of their life.personal financial life cycle
reliance stage (0-18) independent stage (19-24) developing stage(25-35) pre-retirement (36-64) retirement (65+)stages of cycle
made up of everything you ownestate
a legal document containing instructions for what should be done with personal money and property after deathwill
employment status, age no. of dependents, health status, economic outlook, marital statusfactors that will impact financial planning
fund into which payments are made during a persons employmetn years and from which payments are drawn to support the persons retirement from work because of age or ill health.pension
financial plan that sets out expected future income and expenditurebudget
live within means, think about spending, identify months when there are a lot of bills and expenses, plan for large itemswhy prepare a budget
income exactly equals expenditurebalanced budget
when income is greater than expenditurebudget surplus
expenditure is greater than incomebudget deficit
person who buys goods or services for their own useconsumer
something that you buy that you can touch or seegood
something that is done for youservice
value for money, high quality products, good after sales service, info about productmost consumer requirements
do i really need it? can i afford it? do i have space for it in my home? are there any hidden extra charges?what should a consumer ask themselves before buying?
name, weight, price, ingredients, nutritional info, barcode etcinfo about products
when a purchase which seems to be cheaper in the short run actually seems to be more expensive in the long run.false economy
supermarkets own productsown label branded products
the Consumer's association of ireland is an independent organisation, represents irish consumers and seeks to protect their rightswhat is the CAI?
let the buyer beware latincaveat emptor
behave wisely avoid impulse buying and false economies shop around for the best value for moneyconsumer responsibilities
law protects you when you buy goods from a trader and the goods are intended for your own consumptionsale of goods and supply of services act 1980
merchantable quality fit for the purpose be as described conform to the sample shownsale of goods and supply of services act 1980 for goods
necessary skills and qualification, care and attention, merchantable qualitysale of goods and supply of services act 1980 for services
refund, replacement, repairthree forms of redress
sale of goods and supply of services act 1980, receive if you purchase something that is damaged or faulty, entitled to form of redressredress
sale of goods and supply of services act 1980 complaints must be dealt with by the seller retailers must respect consumer's rights retailers cannot display signs that limit reponsibilities guarantees and warranties are an addition to consumer rights but do not replace themseller's responsibilities
promise by the manufacturer or company that it will sort out any problems with a product or service within a specific fixed period of timeguarantee
insurance policy for which you must pay a premiumwarranty
provides protection to consumers regarding misleading claims about goods, services and pricesconsumer protection act 2007
misleading, aggressive, prohibitedunfair commercial practices
false or untrue info is used to deceive the consumermisleading
harassment, physical force or influence is used to force a consumer into buying a productaggressive
forbidden by lawprohibited
stop use, bring item back, explain problem, decide redress, send written complaint,seek advice of third party, small claims procedure, go to courthow to make a complaint
change your mind, misuse of a product, told about faultwhen is a consumer complaint not valid
ccpc, CER, ComReg, FSO, office of the Ombudsman, small claims procedurehelp with a consumer complaint
provide info, conduct research, represent consumersccpc
resolves complaints about energy companiescer
protects consumers of communication businessescomreg
investigates complaints from consumers about financial service ombudsmanFso
investigates complaints from people who have been treated unfairly by a public bodyoffice of the ombudsman
quick cheap easy way to resolve complaint about a faulty good or poor work by a service providersmall claims procedure
refers to the way in which services and goods are made, sold and used in a country or area.economy
method by which countries distribute economic resources and trade goods and serviceseconomic system
centrally planned economy a free market economy a mixed economytypes of economic systems
illustrates the movement of economic resources and wealth throughout the economy.circular flow of income
any attempt to start or do something newenterprise
person who takes the initiative and risk to set up a business in the hope of making a profitentrepreneurs
realistic risk-taker innovative proactive flexible self-confident decisive determinedcharacteristics of entrepreneur
identify opportunities make decisions plan and set goals manage time/stress human relation reality perception assess and manage riskskills of entrepreneur
be your own boss spot gap in market keep all profits currently unemployed flexible hours make decisionreasons for starting a business
lose money work long hours income not guaranteedrisks
establish business's to make a profitfinancial enterprise
puts people and community ahead of private and personal gainsocial enterprise
provides consumers either locally or nationally with access to cultural experiencecultural enerprise
come up new ideas for the business they are working inintrapenerur
resources that are limited in supply or that cannot be replacenon renewable sources
are not limited in supply that wont run out and that can be regrown, reused and recycledrenewable resources
process of balancing the social, economic and environmental systems for the well being of individuals now and in the futuresustainability
meets the needs of the present without compromising the ability of future generation to meet their own needssustainable development
means using resources in a way that meets current needs but also preserves the resources for future generations.sustainable use
right and wrongethics
are produced in a way which is kind to the evironmentethical goods
voluntary act of protest in which consumers refuse to buy from or deal with a particular companyboycott
corporate social responsibility refers to organisations acting to benefit society and /or the environmentCSR
the process by which the world becomes interconnected as a result of increased trade and cultural exchangewhat is globalisation