Presentation for the social studies lesson "rational consumer behavior." Presentation on the topic "rational consumer behavior" Law of Diminishing Marginal Utility

https://accounts.google.com

Slide captions:

Economics Science and Economy

Economics (translation) Translation: Rules for housekeeping An economic system that satisfies the needs of society for the goods of life. A science that studies the patterns of economic processes.

Economics, as a science, is divided into: Microeconomics (object of study - specific firms, households, industries) Macroeconomics - general economic patterns (GDP level, economic growth, inflation, unemployment) World economy - laws of development of the world economy

Economy as an economy: basic concepts An economic system that satisfies the needs of society for vital goods. Benefit (economy) – Means to satisfy human needs

Benefits Free Economic Their volume is greater than the volume of need for them. No need to produce. (Sunlight, air, sea water) Their volume is less than the volume needed for them. Requires production

Economic benefits Product - a product produced for sale Service - a type of useful activity provided, as a rule, for a fee Means of production Consumption product

Economy. Basic concepts Resources - means for the production of economic goods Main groups of resources used for the production of economic goods - factors of production

Factors of production Land - all types of natural resources Labor - labor force Capital - means of production (factory buildings, equipment - (fixed capital), consumables, financial capital) Entrepreneurial abilities - the skills of an entrepreneur in organizing a business Information

Factor income Land - rent Labor - wages Capital - interest Entrepreneurial abilities - profit

The main problem of the economy The number of resources is limited, the number of needs of society is not. What to do?

The problem of economic choice Each economic entity is faced with the problem of economic choice - how exactly to use the limited resources available to it. His task is to use them most effectively.

Economic activity

Main stages (types) of economic activity resources production distribution exchange consumption

Economic growth and development

Economic growth Long-term increase in real GDP, both in absolute terms and per capita Measured by the average annual growth rate of GDP (%)

Measures of economic activity GDP - gross domestic product The sum of market prices of all final products produced on the territory of a given country GNP - gross national product The sum of market prices of all final products produced by citizens of a given country, both within the country and abroad.

GDP Real (adjusted for inflation) Nominal

Types of economic growth Extensive GDP growth occurs due to an increase in the volume of resources used Intensive GDP growth occurs due to an increase in the efficiency of resource use, qualitative improvement

Extensive growth Increasing the number of enterprises Hiring additional workers Maintaining unchanged production technology Increasing the area of ​​cultivated land Development of new deposits

Factors of intensive growth of scientific and technical progress Worker qualifications Improvement of the mechanism of division of labor Efficient organization of production Rational distribution of resources

Economic cycle

Business cycle The alternation of booms and busts in the movement of real GDP

Phases of the economic cycle Boost Recession (Recession) Depression (Crisis) Recovery

Causes of cyclical development Exogenous Wars, revolutions, etc. Major innovations Other external factors (“oil shocks”) Endogenous State monetary policy Changes in the ratio of aggregate demand/supply Etc.

Preview:

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

Firm in economics

Firm (enterprise) This is a commercial organization that spends economic resources to produce goods and services sold on the market.

Costs The entrepreneur's expenses for the acquisition and use of factors of production

Types of costs Variable That part of the costs that for a given period of time directly depends on the volume of output Raw materials, containers, packaging, piecework wages for workers, electricity, transport Constant That part of the costs that for a given period of time does not depend on the volume of output Rent, building maintenance, salaries, management personnel, insurance premiums, loan interest, depreciation

Types of costs External (explicit) This is payment for production factors that are not the property of the owner of the company Materials, electricity, labor Internal (implicit) This is payment for production factors owned by the owner of the company Equal to cash payments that could be received for one’s own resources with their alternative use

External costs = accounting costs External costs + internal costs = economic costs

Profit The difference between a firm's revenue (total income) and costs. Accounting profit = revenue – accounting (external) costs Economic profit = revenue – economic (external + internal) costs

The manufacturer's task is to increase profits and reduce costs, i.e. increase in production efficiency. Efficiency is the effectiveness of a process, defined as the ratio of results to costs.

Efficiency indicators Productivity - the ratio of the number of products produced to the number of uses. r resources (number of products/useful resources) Profitability - the ratio of profit to costs (profit/costs) Labor productivity - the number of products produced per unit of time

Increased production efficiency is the main indicator of intensive growth.

Sources of business financing Internal (self-financing) Depreciation deductions Company profit External Loans Sale of securities

Preview:

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

Market economy

Market The set of social relations associated with the purchase and sale of goods and services

Main features Unregulated demand Unregulated supply Unregulated price

Demand The desire and ability of a buyer to purchase goods and services in a certain period of time at a certain price. Demand is generated by buyers

Law of Demand The quantity demanded is inversely related to the price. (The higher the price, the lower the demand, and vice versa)

Non-price factors influencing demand Income level Fashion Advertising Season Customs and traditions Inflation expectations Prices for complementary and interchangeable goods.

Supply The desire and ability of a manufacturer to produce and offer for sale a product or service at a certain price in a certain period of time. The supply is formed by manufacturers

Law of supply The quantity supplied is directly dependent on the price (the higher the price, the higher the supply and vice versa)

Non-price factors influencing supply Number of producers on the market Production costs Introduction of new technologies Season Inflation expectations

Functions of the market Intermediary Pricing Informational (the producer receives information about demand, the consumer about goods) Regulatory (flow of resources into developing industries) Sanitation (health-improving)

Competition Rivalry between producers of goods and services for the opportunity to increase profits.

Types of markets (by scale) World National Regional Local

Types of markets (according to the object of purchase and sale) Consumer goods and services Means of production Labor market Investment market Foreign currency market Stock market Innovation market Information market

Securities are a specially designed financial document that records the rights of their owner or bearer.

Share A security that secures the rights of their owner to receive part of the JSC's profit in the form of dividends, to participate in the management of the JSC and to part of its property after liquidation

Types of shares: ordinary Preferred (gives a fixed income, but does not give the right to participate in the management of the joint-stock company)

Bond This is a security that secures the right of its owner to receive from the issuer a bond at a predetermined period of its nominal value, with the payment of a fixed percentage.

Exchange A form of organized, regularly functioning market, an institution in which the purchase and sale of similar goods in large quantities (currency, securities, etc.) is carried out.

Preview:

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

Money. Financial system

Money is a special product that acts as an intermediary in the exchange of goods and services.

Functions Measure of value Medium of exchange Medium of accumulation + Medium of payment World money

Finance The set of economic relations in the process of using money (in a broad sense) The main financial organization is the bank

Bank A financial organization engaged in attracting available funds and subsequently providing them on credit, as well as carrying out other financial transactions

Bank activities Bank Deposits Central Bank loans Loans from other banks Issue of securities Purchase of securities loans Passive operations Active operations

Financial system Other financial institutions (Pension fund, insurance companies, stock exchanges) Central Bank Commercial banks loans reserves Loans to citizens and firms Savings of families and firms services

Central Bank (Central Bank) National bank that issues money and is the center of the country's financial and credit system

Preview:

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

Entrepreneurship

Entrepreneurship Initiative, independent activity of people, carried out at their own risk, and aimed at making a profit.

Types of entrepreneurship Manufacturing Commercial (resale) Financial Insurance Intermediation

Forms of entrepreneurship Small business (up to 50 people) Medium business (up to 500 people) Large business (up to several thousand people)

Functions of entrepreneurship Production of necessary goods and services Provision of jobs Replenishment of government. budget through taxes (entrepreneurs, especially large businesses - large taxpayers) Introduction of new technologies (to reduce costs) - modernization of the economy

Legal basis of entrepreneurial activity

Conditions for successful development of entrepreneurship Economic freedom Support for a competitive environment Creation of a legal framework in this area

Basic principles of legal regulation Freedom of economic activity Support of competition Diversity of forms of ownership and their protection

Organizational and legal forms of entrepreneurial activity

Subjects of business law Citizens (individuals) Commercial organizations (legal entities) state

Individual entrepreneur (IP) Individual Features: Independence in decision making Simple registration No significant start-up capital required Can use hired labor Can register your trademark Full property liability for obligations

Commercial legal entities See table

The procedure for opening your own business Justification of entrepreneurial ideas Determination of the composition of founders and choice of organizational and legal form Choice of name Execution of constituent documents State registration Production of a seal Opening a current account in a bank Registration with social funds (pension, employment fund, medical insurance) For certain types entrepreneurship - obtaining a license

Preview:

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

Taxes

Taxes Mandatory payments of legal entities and individuals collected in favor of the state

Types of taxes Direct (charged explicitly from property and income) Income From property Income tax Indirect (charged not explicitly, included in the price of goods) Customs duties Excise taxes VAT

Tax systems Proportional (the % of tax does not change depending on the amount of income) Progressive (the higher the income, the higher the % of tax) Regressive (the higher the income, the lower the % of tax)

Functions of taxes Fiscal (replenishment of the state budget, covering government expenses) Distribution (redistribution of income, smoothing social inequality) Stimulating (preferential taxation) Social and educational (restraining the consumption of products harmful to health by imposing increased taxes on them) Accounting (accounting for personal income . and legal entities)

Principles of taxation Principle of fairness Principle of certainty and accuracy of taxes Principle of obligatory principle Principle of economy Principle of convenience of collecting taxes for the taxpayer

Taxpayer rights Receive free information about current taxes and fees, etc. Take advantage of benefits Demand compliance with tax secrecy Do not comply with illegal acts and demands of tax authorities Appeal decisions of tax authorities Demand compensation for losses caused by illegal decisions of tax authorities or actions of their officials.

Responsibilities of taxpayers Pay taxes and fees on time and in full Register with tax authorities. Keep records of your income and objects of taxation. Cannot interfere with the legal activities of cash officials. about rg. Provide necessary information and documents

Preview:

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

Management

Management Activities for organizing and coordinating the work of an enterprise

Management functions Organization Planning Control Motivation (leadership)

Features of modern management The company’s activities are focused on the consumer The company is considered an open system The company’s focus on constant renewal The company’s focus is on the “self-actualizing person”, and not on the “performing person”

Preview:

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

Preview:

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

Inflation

Inflation The process of depreciation of money, which manifests itself as long-term increases in the prices of goods and services.

Causes of inflation Demand inflation - market equilibrium is disrupted on the demand side (the level of income of the population grows faster than the volume of goods and services) Cost inflation (supply) - increased costs entail increased prices

Types of inflation Creeping (up to 10% per year) Galloping (up to 100% per year) Hyperinflation (50% per month, up to 130 rubles per year) Example of hyperinflation: Russia, 1992 – 1353% per year

Types of inflation (according to the nature of the course) Open Hidden

Consequences of high inflation Depreciation of income and savings of the population (fall in living standards Depreciation of loans (reduction in production) Loss of public confidence in financial institutions (crisis of the banking system) Decline in living standards can lead to an increase in protest sentiments

Anti-inflationary measures Adaptation Liquidation

Denomination is the enlargement of a monetary unit through exchange into def. Proportions of old banknotes to new ones Devaluation - the official decrease in the exchange rate of the national currency in relation to hard currencies

Preview:

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

State in economics

Should the state intervene in the economy? A. Smith “The Invisible Hand of the Market” - substantiated the possibility of self-regulation of a market economy. Modern movements: Monetarism (Friedman) Keynesianism (Keynes)

State goals in the economy Ensure economic growth Create conditions for economic freedom Ensure economic security and efficiency Take care of full employment Social security for citizens

Functions of the state in the economy Stabilization of the economy Legal function (creation of a legal framework for economic activity) Regulation of relations between employer and employee Regulation of monetary circulation Redistribution of income Control over foreign economic activity Production of public goods Support for sectors of the economy that cannot develop on a private basis Compensation for external effects

Public goods These are goods and services provided by the government to its citizens on an equal basis. Paid through taxes

Examples Defense Law enforcement “free” education, medicine Visiting parks, libraries Support of fundamental science, culture Maintenance of federal highways, etc.

The problem of external effects External effects are costs and benefits for third parties associated with the production or consumption of goods.

Directions of state policy Stabilization Structural

State regulation direct Fiscal policy indirect Monetary policy 1. Legislative activity 2. state. orders 3. Expansion of state. sectors

Monetary (monetary) policy Control over the money supply in the economy An increase in the money supply during a recession and a decrease during a recovery. Monetary policy conductor - Central Bank

Functions of the Central Bank Issuing money Storing gold and foreign exchange reserves Providing loans and performing settlement operations for the government Lending and storing reserves of commercial banks Setting the discount rate Licensing and monitoring the activities of financial organizations

Monetary policy mechanisms The discount rate is the percentage at which the Central Bank gives loans to commercial banks The required reserve ratio is the part of the funds of commercial banks that they are required to keep as reserves with the Central Bank

Monetary policy of the state The discount rate increases (decreases) reduction (growth) of production Loans from commercial banks become more expensive (cheaper) Reduction (increase) of demand reduction (growth) of the money supply decrease (increase) inflation The required reserve rate increases (decreases)

Assignment: Suggest in what period of the economic cycle it is profitable for the state to increase and in what period to decrease the discount interest rate and the required reserve ratio

Fiscal policy of the state State activities in the field of taxation, regulation of public spending and the state budget

State Budget This is a consolidated plan of government revenues and expenditures on deferment. time period Compiled by the Government of the Russian Federation, approved by the State. Duma in the form of a law. At the end of the financial year, the Government reports on budget execution

State budget Income items Expenditure items Taxes and fees Revenue from privatization State profit. enterprises Income from the sale of government securities Issue of money Defense Contents of state. apparatus (officials) Maintenance of law enforcement agencies Social security Education Medicine Service of public debt Science, culture

Types of budget Surplus (income exceeds expenses) Deficit (expenses exceed income) Balanced (income equals expenses)

Ways to cover the budget deficit Reducing budget expenditures (including cuts in government programs) Finding additional sources of income (often by increasing taxes) Issuing unsecured money (increasing inflation Government loans (increasing government debt)

Assignment Do you agree with the opinion that the state budget reflects the main directions of the country's domestic and foreign policy? Give reasons for your answer.

Preview:

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

World economy

World economy This is a set of economies of individual countries interconnected by a system of international economic relations. The basis of the world economy is the international division of labor

International division of labor This is the specialization of countries in the production of certain products

MRI Conditioned by Climate Geographical location Availability of minerals and other natural resources Level of economic, scientific and technical development of the country Established traditions in the production of certain goods

International economic relations Trade Monetary relations Movement of capital and investment Migration of labor Exchange in the field of science and technology

International trade An important part of the world economy is international trade. Basic concepts of international trade: Export Import Trade balance (the difference between the value of exports and imports of goods for a certain period)

Policy in the field of international trade Protectionism - state policy aimed at protecting the interests of domestic producers from foreign competitors Free trade ("free trade" policy) - state policy aimed at the free development of international trade

Pros and cons of free trade Pros: Saturation of national. market with cheap and high-quality goods. Competition stimulates domestic. manufacturers Increase in revenues to the treasury due to indirect taxes Opening of branches of foreign companies creates new jobs Cons Demand for domestic products will fall Reduction in domestic production

Methods of protectionist policy Tariff Customs tariffs (export/import tariff) Customs unions Non-tariff Establishment of quotas Economic sanctions (including an embargo - a complete ban on trade with any country) Dumping

Labor productivity Number of goods and services produced per unit of time (per hour) Labor efficiency indicator

Factors influencing labor productivity Introduction of new technologies Improvement of employee qualifications Automation and robotization of production (equipping production with equipment) Developed specialization of labor (mechanism for division of labor) Effective organization of production Effective motivation of workers and control

Features of the labor market Secondary (supply and demand in this market are determined by the demand and supply of those goods that are produced using a given production factor) Inflexible There is a minimum price - minimum wage - minimum wage

The minimum wage is calculated based on the subsistence level. Living wage - the level of income necessary to meet the basic life needs of a person Minimum wage Living wage

International Living Wage Food: Body mass index of at least 16. Water: Should not come exclusively from rivers and ponds, and should be within a 15-minute walk (one way). Bathroom: At home or nearby. Treatment: Should be available to pregnant women and seriously ill patients. Shelter: No more than 4 people in one room. An earthen floor is not acceptable. Education: Ability to learn to read. Information: Any means of communication: radio, television, telephone, Internet

The living wage in Russia for the 1st quarter of 2014 per capita is 7,688 rubles. for the working population - 8283 rubles. for pensioners - 6308 rubles. for children - 7452 rub. In Moscow - 11,861 rubles In the Moscow region - 9162 rubles.

Sizes of the minimum wage The minimum wage in Russia for 2014 is 5554 rubles. The minimum wage in Moscow is 14,000 rubles. Minimum wage for the Moscow region. – 12,000 rub.

Salary Nominal (not taking into account inflation) Real (taking into account inflation)

Employment and unemployment Employment is the activity of citizens related to the satisfaction of personal and social needs, does not contradict the law and, as a rule, generates income Unemployment is a socio-economic situation in which part of the working-age population who wants to work cannot find work

Population Working population Disabled population Dropped out of the labor force employed unemployed

Which of the following is unemployed? Housewife Group 1 disabled Full-time student Pensioner looking for part-time work University graduate Individual entrepreneur Woman on maternity leave

Types of unemployment Type of unemployment Reasons Frictional Change of place of residence Subjective reasons depending on the worker himself (inflated demands, low mobility, etc.) Structural Changes in the demand for labor in certain sectors of the economy (structural restructuring of the economy) Cyclical Economic crisis Seasonal Peculiarities of demand for labor in certain regions and industries

Natural rate of unemployment Frictional + Structural = Natural rate of unemployment

Types of unemployment Open Hidden

Consequences of unemployment Economic Reduction in income level (-reduction in demand) Reduction in tax revenues Irrational use of a resource such as labor Social Decrease in living standards Increase in social tension Increase in crime, alcoholism, etc.

State policy in the field of employment Active Support for entrepreneurial activity Professional training and retraining of personnel Information on the labor market Assistance in employment def. groups of the population (graduates, disabled people, etc.) Vocational training for the unemployed Organization of public works Passive Payment of benefits Provision of services for the selection of places through the labor exchange

Preview:

Sources of consumer income Salary Profit from business Social benefits from the state Income from property Interest on deposits Income from securities

Income Savings Expenses Consumption Mandatory discretionary Food, clothing, housing and communal services, Transport medicines Recreation, Sports, education, luxury goods Bank deposits Securities Gold, precious metals. Metals Real Estate Insurance

Engel's Law The structure of consumption expenditures depends on the level of income. The higher the consumer's income, the lower the share of his expenses on food products. The share of household expenditures on food can be used to judge the welfare of a country.

Income Real (adjusted for inflation) Nominal (excluding inflation)

Standard of living An indicator of the population's provision with goods, services and living conditions necessary for a comfortable and safe existence.

Living standard indicators GDP per capita (income level) + Average life expectancy Level of education and healthcare State of the environment Accessibility of culture Human security Quality of life

Economic culture A system of values ​​and motives for economic activity, economic knowledge of citizens and norms governing economic relations.

Social attitudes Attitude to property Attitude to work Attitude to consumption, etc.

Manufacturer

Manufacturer The goal is to make a profit. The main problem is limited resources. Rational behavior of the manufacturer lies in their effective use. Economic freedom presupposes the social responsibility of the entrepreneur.

Economic freedom and social responsibility The desire for maximum profit may contradict the interests and values ​​of society. An entrepreneur must be guided not only by personal interests, but also by the interests of society as a whole. Issues of ecology, social stability, level of culture and education, level of health.

Slide 2

Utility

• Rational consumer behavior is the desire to extract maximum utility for oneself.
• Is utility an objective or subjective property?

View all slides

Consumers in the economy: households and individuals as consumers of goods and services, firms (producers) as consumers of investment goods, the state as a consumer of goods and services in order to meet public needs, personal consumption, industrial consumption, public consumption.

Think about the difference in consumer behavior in market and command-administrative economic systems? In market conditions, the consumer’s choice is to maximize utility from the consumption of goods and services. What other factors can you name that influence consumer choice?

Remember the definitions of the concepts: “good” “free goods” “economic goods” good Everything that a person uses to satisfy his needs. free goods Goods that are available to any consumer and do not require giving up other goods, i.e. can be consumed in unlimited quantities. economic goods Goods, the available volume of which is less than the need for them. These benefits are created by man and are not found anywhere in nature.

Only that good that has utility for the consumer can satisfy his needs. Utility The satisfaction a person receives from consuming a product or service. Subjective assessment of a product, which depends on the character, habits, taste, mood of the consumer and the conditions in which he finds himself.

General marginal utility The total utility of the total volume of goods consumed. The more quantity of a good is consumed, the greater its utility. At the same time, each subsequent unit of the good becomes less valuable as the consumer becomes saturated. The additional utility gained from consuming one more unit of a good. Law of Marginal Utility:

2. Consumer income and expenses Income is funds in cash or in kind received as a result of the economic and financial activities of individuals, enterprises and the state. Nominal income Real income Disposable income amount of money received by individuals during a given period amount of goods and services that can be purchased with nominal income, taking into account changes in the price level Nominal income minus taxes and mandatory payments

Sources of formation of nominal income Income from professional activities or salary Transfer payments - gratuitous payments from the state (pensions, benefits) Income received through the credit and financial system (state insurance, interest on bank deposits, bank loans for individual housing construction, income from shares, bonds, lottery winnings, damage compensation payments)

The quantity and quality of goods that can be purchased with income depend not only on the amount of income, but also on the rationality of expenses. Expenses consumptionsavings food products non-food products services taxes bank accounts securities (shares) real estate insurance

Factors influencing population incomeexpenditures of the population level of qualifications salary dynamics of retail prices saturation of the consumer market with goods scale and efficiency of entrepreneurial activity inflationary rise in prices saturation of the consumer market with goods level of public confidence in banks income level

Preparing for the exam: 1. A typical feature of consumer behavior is 1) increasing attention to the quantity of goods rather than their quality when income increases 2) refusal to buy expensive things when income increases 3) increased spending on expensive goods when income decreases 4) spending most of the income of poor families on clothing 2. Which of the following examples illustrates rational consumer behavior? 1) searching for information about the product 2) searching for the most popular product 3) assessing the quality of the product based on its price 4) following advertising

3. Which of the following is an example of a violation of consumer rights? 1) lack of possibility of purchasing on credit 2) lack of advertising of goods 3) high price of goods 4) lack of reliable information about goods 4. Violation of consumer rights guaranteed by law is 1) commodity shortage 2) market price of consumer goods 3) lack of information about goods 4 ) insufficient quantity of goods in warehouse

5. What are the typical features of rational consumer behavior? 1) reduction of expenses on expensive goods with an increase in income 2) with any increase in income, no limit on spending money on food 3) increasing attention to the quality of goods with an increase in income 4) with consistently high incomes, refusal to purchase expensive goods 6. Typical features of consumer behavior behaviors include 1) spending a large part of the income of poor families on food, clothing, housing 2) increasing the growth of expenses on expensive items in a greater proportion than income 3) decreasing attention to the quality of goods when income increases 4) increasing expenses on expensive goods when income decreases

7. In the list of sources of consumer income, the following are(are) superfluous: 1) dividends on shares 2) inheritance tax 3) property 4) unemployment benefits 8. Family budget income includes 1) payment of interest on a loan 2) purchase of food 3 ) unemployment benefits 4) payment of utilities 9. What is necessary for consumer savings to grow? 1) the presence of a credit system for the population 2) an increase in the cost of living 3) a decrease in the quality of goods 4) an increase in income

12. An increase in consumer spending is influenced by 1) an increase in income tax 2) a decrease in social benefits 3) an increase in consumer income 4) a decrease in labor productivity 13. What is a mandatory consumer expense? 1) transportation costs 2) purchase of securities 3) payment for the services of an apartment interior designer 4) property insurance

To use presentation previews, create a Google account and log in to it: https://accounts.google.com

Slide captions:

HOMEWORK: Answer the questions: 1) Define the concept of “economic system”. How many types of economic systems exist currently? 2) List and briefly describe the types of economic systems: ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________

Rational consumer.

A rational consumer is a consumer who always maximizes the utility of consumption.

The rational consumer faces the problem of choice. He can choose from an endless variety of goods and services that are sold in the market.

Axioms of rational consumption: 1) a rational consumer is able to rank (compare) sets of goods according to their degree of preference. 2) a rational consumer evaluates each set of goods from the point of view of the usefulness for him of each of the goods included in the set. 3) the preferences of a rational consumer are characterized by the property of transitivity. 4) a rational consumer always prefers more of any good to less. 5) a rational consumer usually sacrifices more easily the consumption of the product that he has more of.

CONCLUSION: In the simplest case, the composition and volume of consumption depends on the preferences of the consumer, his income and prices for goods and services. Accordingly, the theory of the rational consumer answers several questions: 1) what determines the price of demand for a product or service? 2) what set of goods will the consumer prefer? 3) how does consumption depend on income?

Slide 1

The presentation was prepared by Olga Valerievna Uleva, teacher of history and social studies, Secondary School No. 1353

Slide 2

PLAN FOR STUDYING THE TOPIC:
Consumer behavior as the process of forming consumer demand for a variety of goods and services, taking into account their income and personal preferences. Obtaining maximum utility is the goal of a rational consumer. Consumer sovereignty: in a command economy; in a market economy; Unlimited needs and limited income. Sources of consumer income: wages; state social payments; income from business and other activities; property income. Mandatory and discretionary expenses. Engel's law. Savings (deposits, securities, real estate, insurance)
RATIONAL CONSUMER BEHAVIOR

Slide 3

CONSUMER BEHAVIOR -
the process of generating consumer demand for a variety of goods and services, taking into account their income and personal preferences.
They are useful, that is, they satisfy any needs of a person or society.
Why does a consumer buy a product or service?
A RATIONAL consumer manages his spending on goods and services in such a way as to obtain maximum “satisfaction”, or MAXIMUM UTILITY.
RATIONALITY (from the Latin ratio - reason) is a term in the broadest sense meaning reasonableness, meaningfulness.

Slide 4

Freedom of economic behavior predetermines consumer sovereignty.
CONSUMER SOVEREIGNTY -
the right of the owner of any type of resources to independently make decisions related to the disposal of these resources.
TEAM ECONOMY
Consumer actions are usually regulated. In the USSR, the consumer was deprived of the freedom to choose housing, medical institutions, and some expensive goods (cars, furniture, etc.).
MARKET ECONOMY

Slide 5

awareness of the need to purchase, searching for information about a product or service, assessing possible purchase options, making a purchase decision.
Determine the sequence of actions of a rational consumer.
Can we always buy what we want?

Slide 6

wage; social payments from the state to individual citizens in the form of benefits, pensions, scholarships; income from business and other activities; income from property (payment received for renting your apartment or cottage, interest on money capital, dividends on securities).
SOURCES OF CONSUMER INCOME
INCOME RECEIVED
PURCHASE OF GOODS AND PAYMENT FOR SERVICES (to meet people’s personal needs)
SAVINGS (as income increases, so does the amount of savings)

Slide 7

CONSUMER SPENDING
tourist package, purchase of books, paintings, cars, etc.
MANDATORY (minimum required)
ARBITRARY
expenses for food, clothing, transportation costs, utility bills, etc.
CONSUMER BASKET

Slide 8

ENGEL'S LAW
Ernst Engel (1821-1896) German economist and statistician
cash income (rub.)
quantity of goods
The higher the family's income, the lower the share of its expenses on food products.
The richer the country, the smaller the proportion of its citizens' personal income goes to mandatory expenses.

Slide 9

OPPORTUNITY COST
- this is lost profit, the best of the options that were rejected due to limited resources.
See Kireev – page 18 Queen Burmistrova – page 18

Slide 10

SAVING
For a rational consumer, it is important not only to spend money skillfully, but also to properly allocate their savings.
bank deposit purchase of securities (stocks, bonds) purchase of real estate insurance (life, health, property)
deposit

Slide 11

QUOTE BOOK
True luxury lies in resisting consumer pressure on your own. Alexander von Schonburg (modern German writer).
The world could be perceived as amazing, but I used it for ordinary consumption. Wislawa Szymborska (Polish poet; winner of the 1996 Nobel Prize in Literature).
Consumption is the religion of modern man. Jean-Christophe Grange (modern French writer and screenwriter).
The road to civilization is paved with tin cans. Alberto Moravia (20th century Italian writer and journalist).
The fastest way to increase your wealth is to reduce your needs. Pierre Boist (French lexicographer of the 18th-19th centuries)