Got questions?
Its exam time here at my university and most places around around the world. In my studies for Principles of Economics 2, I wrote down some questions which we all probably have and I learned the answers to them. Here are three.
Expensive hardcovers, cheap paperback, same printing cost, what's the difference?
Publishing companies like any other company are only in business to make a profit, not to improve your knowledge or provide you with material for your entertainment thus they have the ability to charge high prices. When an author writes a book and brings it to thee publisher the company makes an economic how much is the consumer willing to pay for this book. For a popular author the book can sell for about $30 USD, which in comparison is about 3000% profit than it cost to print the book. The publisher charges this much because the die hard fans will buy it,the cheaper paperback version with the same novel inside comes out a couple months later for the misers like myself to buy. Yes people still read hardcovers and paper backs!
Is Advertising a psychological Duress against consumers?
How many times are you watching your favorite show on television and a random commercial about some food item comes on and automatically you start craving that item or you get 'hungry'? How about the commercials that are only played on certain stations and those during certain times of the day. Like any other business as I will continue to say television and radio stations are only in business to make a profit, not present important news and provide you with thrill and laughter. they make boatloads of cash from advertisements. Prime example how much does it cost to air a thirty second ad during the Superbowl, roughly $2 Million USD. So advertising isn't cheap, but companies have to get you the consumer to want the product. Even if there are better products out there. The psychological duress comes in at the individual level, say for instance ad comes on and has this white guy from Wisconsin with a Jamaican accent going around the office encouraging people to have a good time and smile (like all Jamaican ads where as Jamaicans we apparently have No Problem Mon). He then goes out to lunch with the boss and an coworker then they return with car stink of weed(marijuana) and this is a Volkswagen ad. But what is it really telling you to do, buy a VW, smoke weed (Marijuana) and be Irie(Content/cool) like a Jamaican!
Are Credit Cards Money?
Many People use credit cards like they eat M&Ms, but many people think that credit cards are money because they help you to do transactions. But when you swipe a credit card you are actually telling the firm here is an assurance that the bank who issued the card will pay you this amount at such time. This says that credit cards really a form of deferred payment. The credit card holder then has to repay the bank the money that it paid usually at an interest rate, which is not usually low. Here is a secret that banks don't want you to know about credit cards, have you heard of the cards that give you benefits like frequent flyer miles or cash back. The catch with those cards is that they usually charge a higher interest rate so you eventually just pay more with rewards cards. So get regular cards and save some money!
Expensive hardcovers, cheap paperback, same printing cost, what's the difference?
Publishing companies like any other company are only in business to make a profit, not to improve your knowledge or provide you with material for your entertainment thus they have the ability to charge high prices. When an author writes a book and brings it to thee publisher the company makes an economic how much is the consumer willing to pay for this book. For a popular author the book can sell for about $30 USD, which in comparison is about 3000% profit than it cost to print the book. The publisher charges this much because the die hard fans will buy it,the cheaper paperback version with the same novel inside comes out a couple months later for the misers like myself to buy. Yes people still read hardcovers and paper backs!
Is Advertising a psychological Duress against consumers?
How many times are you watching your favorite show on television and a random commercial about some food item comes on and automatically you start craving that item or you get 'hungry'? How about the commercials that are only played on certain stations and those during certain times of the day. Like any other business as I will continue to say television and radio stations are only in business to make a profit, not present important news and provide you with thrill and laughter. they make boatloads of cash from advertisements. Prime example how much does it cost to air a thirty second ad during the Superbowl, roughly $2 Million USD. So advertising isn't cheap, but companies have to get you the consumer to want the product. Even if there are better products out there. The psychological duress comes in at the individual level, say for instance ad comes on and has this white guy from Wisconsin with a Jamaican accent going around the office encouraging people to have a good time and smile (like all Jamaican ads where as Jamaicans we apparently have No Problem Mon). He then goes out to lunch with the boss and an coworker then they return with car stink of weed(marijuana) and this is a Volkswagen ad. But what is it really telling you to do, buy a VW, smoke weed (Marijuana) and be Irie(Content/cool) like a Jamaican!
Are Credit Cards Money?
Many People use credit cards like they eat M&Ms, but many people think that credit cards are money because they help you to do transactions. But when you swipe a credit card you are actually telling the firm here is an assurance that the bank who issued the card will pay you this amount at such time. This says that credit cards really a form of deferred payment. The credit card holder then has to repay the bank the money that it paid usually at an interest rate, which is not usually low. Here is a secret that banks don't want you to know about credit cards, have you heard of the cards that give you benefits like frequent flyer miles or cash back. The catch with those cards is that they usually charge a higher interest rate so you eventually just pay more with rewards cards. So get regular cards and save some money!
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