Quick Answer: What Trade Offs Occur When You Are Gathering Information?

What are three important buying principles?

In this section, you’ll learn about three basic buying princi- ples that can help you and all consumers achieve this goal.

They are: (1) gathering information; (2) using advertising wisely; and (3) comparison shopping..

What are trade offs in economics?

Economics is all about tradeoffs. A tradeoff is loosely defined as any situation where making one choice means losing something else, usually forgoing a benefit or opportunity. We experience tradeoffs in zero-sum situations, when a plus in one area must be a negative in another.

What’s leftover money called?

Key Takeaways. Discretionary income is money left over after a person pays their taxes and essential goods and services like housing and food. Nonessential items like vacations and luxury goods are usually paid for with funds from discretionary income. Disposable income and discretionary income are two different things …

How do you determine disposable income?

Disposable income is calculated by subtracting income taxes from income. For most people who receive a paycheck, disposable income is the net amount they receive in their check. For example, suppose a household has an income of $250,000 and it pays a 37% tax rate.

What age group has the most disposable income?

During the year 2018/2019, the highest average amount of disposable income for any age group occurred in the 45 to 54 year-old group, at 44.510 GBP. The age group with the lowest average disposable income were those aged 85 and over.

What tradeoff occurs when a consumer is gathering information for a purchasing decision?

What trade-offs should a consumer consider when gathering information? Informative advertising gives information about a product. Competitive advertising attempts to persuade consumers that their product is better.

How are trade offs and opportunity costs related quizlet?

what are tradeoffs? … How does an opportunity cost differ from a trade-off? Trade offs are all the alternatives that we give up when we choose one course of actions over others, and opportunity cost is the most desirable alternative given up as a result of a decision. what are “guns or butter” decisions?

What kind of products are purchased with disposable income?

What kinds of products are purchased with disposable income? Necessities such as food, clothing and shelter.

What is the goal of competitive advertising?

The goal of using competitive advertising is to influence demand for a specific brand. Comparative advertising compares two or more competing brands on one or more specific attributes, be it directly or indirectly.