Economic Issues for Consumers

by Miller, Roger LeRoy; Stafford, Alan D.

• ISBN13: 9780534552367
• ISBN10: 0534552366
• Edition: 9th
• Format: Hardcover
• Copyright: 2000-07-31
• Publisher: Wadsworth Publishing

Summary

This book employs an "issues approach" to consumer economics. Each chapter has one or two consumer issues that are highlighted through engaging, real world examples. These real world examples are highly applied aspects of everyday consumer situations.

Table of Contents

Preface	xvii
Unit 1 The Consumer in Today's World	1	(116)
The Consumer in Our Electronic Economy	2	(23)
Scarcity and the Consumer	3	(1)
Universal Scarcity	4	(1)
The Necessity of Choice	4	(1)
Choice and Opportunity Cost	5	(1)
The Tradeoffs Facing You	5	(1)
An Implicit Assumption	5	(1)
Markets	6	(1)
Voluntary Exchange in the U.S. Economy	6	(1)
Demand and Supply Analysis---A Brief Introduction	6	(1)
Law of Demand	7	(1)
Law of Supply	7	(1)
Equilibrium Price	8	(1)
The Rational Consumer---What's a Dress Worth?	8	(2)
Relative Price	10	(1)
Consumer Sovereignty in a Market Economy	10	(1)
The Real World of Imperfect Competition	11	(1)
Role of Government	12	(1)
The Cyber Consumer---Furnishing a Home Online	13	(1)
Americans in an Electronic Market	14	(1)
Growth of the Internet	14	(1)
Consumer Use of the Internet	15	(1)
The Cyber Economy	15	(1)
New Technology---New Responsibilities	16	(1)
Consumer Economics in an Electronic Economy	16	(1)
Consumer Issues: An Introduction	17	(1)
Consumer Issue 1: Ethics and the Consumer	18	(7)
Rational Consumer Decision Making	25	(21)
Decisions, Decisions	26	(1)
Rational Consumer Decision Making	26	(2)
Values and Rational Decision Making	28	(8)
What are Values?	28	(3)
Deciding to Act	31	(1)
Identifying Alternatives	31	(1)
Evaluating Alternatives	31	(5)
Conspicuous Consumption	36	(1)
Time Management and Rational Decision Making	36	(3)
Breaking Parkinson's Law	37	(2)
Consumer Issue 2: Buying Technology--Based Products	39	(7)
A Flood of Advertising	46	(21)
Costs and Benefits of Advertising	47	(1)
Who Pays?	47	(1)
Brand--Name Advertising	48	(2)
Promoting Brand--Name Loyalty	48	(1)
The Value of Brand Names	49	(1)
Benefits of Brand Names to Producers	49	(1)
Other Types of Advertising	50	(1)
Informative Advertising	50	(1)
Comparative and Defensive Advertising	50	(1)
The Cyber Consumer---Informative Advertising on the Internet	51	(1)
The Ugly Side of Advertising	52	(1)
Deceptive Advertising	52	(2)
What Kinds of Ads Are Deceptive?	52	(1)
Bait and Switch: The Case of the Obsolete Video Camera	53	(1)
Other Deceptions	53	(1)
Consumer Closeup---What Constitutes Bait and Switch?	54	(1)
What the FTC Can Do	54	(1)
Cease-and-Desist Orders	54	(1)
Counteradvertising	55	(1)
What You Can Do	55	(1)
Advertising and Your Privacy	55	(1)
Your Telemarketing Rights	56	(1)
Privately Prepared Information	57	(1)
The Ethical Consumer---Would You Buy Kathie Lee Clothing?	58	(1)
How Much Information Should We Acquire?	59	(2)
Consumer Issue 3: Shopping on the Internet	61	(6)
The Many Faces of Fraud	67	(17)
Personal-and Health-Care Fraud	68	(1)
The Cyber Consumer---The National Fraud Information Center	69	(2)
Weight Reduction	70	(1)
The High Price of Beauty	71	(1)
Health-Insurance Scams	71	(1)
Consumer Goods Fraud	71	(2)
Being an Assertive Consumer	72	(1)
Cooling-Off Periods	72	(1)
Consumer Closeup---When Is a Toupee Not a Wig?	73	(1)
Telemarketing and Mail-Order Madness	73	(1)
Federal Trade Commission Rules	74	(1)
Hints to Catalog Shoppers	74	(1)
Protection from Fraudulent Advertising	75	(4)
Automobile Repair Services	76	(1)
TV or Computer Repair Services	76	(1)
Buying Education	76	(1)
Financial-Services Fraud	76	(1)
Interstate Land Sales	77	(1)
Credit Card Fraud	78	(1)
Ways to Avoid Being Victimized by Consumer Fraud	79	(1)
Consumer Issue 4: Recognizing and Avoiding Internet Fraud	80	(4)
Protection for the Consumer	84	(33)
Sources of Consumer Protection	85	(5)
Antitrust Laws	85	(2)
Food and Drug Act	87	(1)
A Renewed Interest in the Consumer	88	(1)
The Presidents Speak Up	89	(1)
Consumer Responsibilities	90	(1)
Enforcement of Federal Consumer Protection Laws	90	(1)
The Ethical Consumer---How Far Would You Go?	91	(1)
Consumer Affairs Council and Coordination of Consumer Programs	91	(1)
Federal Trade Commission	91	(1)
The Cyber Consumer---The U.S. Department of Commerce Home Page	92	(2)
Consumer Product Safety Commission	93	(1)
State and Local Governments and Consumer Protection	94	(1)
Using Small Claims Courts	94	(1)
The Global Consumer---Recalls Happen Everywhere	95	(3)
What Are Your Rights and Responsibilities?	95	(1)
You Have to Watch Out	96	(1)
Does Your Case Make Sense?	96	(1)
How These Courts Work	97	(1)
Preparing for Trial	97	(1)
What Happens in Court	98	(1)
Sources of Private-Sector Consumer Protection	98	(3)
Organizations That Report on Consumer Products	98	(1)
Consumers Union	98	(1)
Consumers' Research Association	99	(1)
Other Product-Testing Groups	99	(1)
Better Business Bureaus	99	(2)
Role of the Media	101	(1)
Private Industry's Self-Regulation	101	(1)
Warranties and Consumer Protection	101	(3)
Magnuson-Moss Warranty Act	102	(1)
Full versus Limited Warranties	102	(1)
Settling Disputes	102	(1)
Implied Warranties	102	(1)
Implied Warranty of Merchantability	103	(1)
Implied Warranty of Fitness	103	(1)
Consumer Protection Today	104	(2)
Consumer Issue 5: Getting Help for Consumer Problems	106	(11)
Unit 2 Budgeting	117	(58)
The Consumer as Wage Earner	118	(22)
Investment in Human Capital	119	(1)
Rate of Return for Education	119	(1)
The Changing Job Scene	120	(1)
Occupational Wage Differentials	121	(1)
The Global Consumer---Preparing for a Career in the Global Economy	122	(1)
Wages and Ages	122	(1)
Occupational Choice and Income	123	(1)
The Cyber Consumer---Career Guidance on the Internet	124	(1)
Nonmoney Income	125	(1)
Gender and Jobs	126	(1)
Problems in the Workplace	127	(1)
Jobs through the Year 2006	127	(1)
Consumer Closeup---Equal Athletic Opportunities	127	(3)
The Problem of Inflation	130	(2)
How Inflation Is Measured	130	(1)
Problems with the CPI	131	(1)
Varying Effects of Inflation	132	(1)
Inflation and Consumer Decisions	132	(1)
Real and Money Values	133	(1)
Consumer Issue 6: How to Choose and Start a Career	134	(6)
You Have to Live with What You Have	140	(18)
Consumers Need a Spending Plan	141	(1)
Democratic Decision Making	142	(1)
The Family Council	142	(1)
College and Budgeting	143	(1)
Budget Making, Goals, and Value Clarification	143	(1)
The Cyber Consumer---Finding Financial Aid Online	144	(1)
How Does the Typical Household Allocate Its Income?	145	(1)
Creating a Budget Plan	146	(2)
The Importance of Keeping Records	147	(1)
Constructing a One-Month Budget Worksheet	147	(1)
Developing an Annual Budget Worksheet	147	(1)
Reviewing Your Budget	148	(1)
Fitting It All into a Lifetime Plan	148	(1)
The Rational Consumer---What Is a Necessity?	149	(1)
Budget-Assistance Programs	150	(1)
Budget Software	150	(1)
Consumer Credit Counselors	150	(1)
Consumer Issue 7: Budgeting for Recreation and Leisure	151	(7)
Paying for Government	158	(17)
The Whys and Hows of Taxation	159	(3)
First, a Little Theory	159	(1)
The Benefit Principle	159	(2)
The Ability-to-Pay Principle	161	(1)
Personal Federal Income Tax	162	(1)
How Our Progressive System Evolved	162	(1)
The Rational Consumer---Taxes on Tips	163	(2)
A Complicated Tax System	164	(1)
Taxpayers as Consumers of Government Services	164	(1)
The Cyber Consumer--Tax Assistance from the IRS Online	165	(1)
Consumer Issue 8: Preparing Your Income Tax Return	166	(9)
Unit 3 Major Consumption Expenditures	175	(106)
The $850+ Billion American Diet	176	(29)
Choosing the Food We Eat	177	(1)
Government Labeling and Inspection Requirements	178	(5)
Fair Packaging	178	(1)
Food Labeling	178	(2)
USDA Grades	180	(1)
Meat	181	(1)
Poultry	181	(1)
Other Food Products	182	(1)
Irridated Meats	182	(1)
The Global Consumer---Exporting Genetically Modified Foods	183	(1)
Food Labels and the Consumer	183	(1)
The Cost of Labeling	183	(1)
Nutrition	183	(3)
Recommended Dietary Allowances	185	(1)
Basic Food Groups	185	(1)
Food Additives	186	(4)
Classification of Additives	188	(1)
Direct Additives	188	(1)
Food Colors	189	(1)
Preservatives	189	(1)
Artificial Sweeteners	189	(1)
The Cyber Consumer---Online Dietary Guidelines	190	(3)
Indirect Additives	191	(1)
How Safe Is ``Safe''?	191	(1)
Consumer Confusion	191	(1)
Dietary Supplements	192	(1)
Tradeoffs We Make When We Buy Food	193	(1)
Health, Natural, and Organic Foods	193	(1)
The Growing Trend toward Convenience Food	193	(2)
Why Convenience Foods?	193	(1)
Fast Foods Aren't Necessarily Junk Foods	194	(1)
Getting the Most for Your Food-Shopping Dollar	195	(2)
Are Name-Brand Foods Better?	195	(1)
The Psychology of Selling Food	196	(1)
Unit Pricing	196	(1)
Electronic Price Scanning and the Consumer	196	(1)
The Rational Consumer---Truth in Weight-Loss Programs	197	(1)
Consumer Issue 9: Shopping for the Lo-Cal Diet	198	(7)
Purchasing Household Products	205	(25)
Clothing, Happiness, and Budget Considerations	206	(1)
Why So Many Clothes?	207	(1)
Customs	207	(1)
Aesthetic Considerations	207	(1)
Values	207	(1)
Durability versus Price	208	(1)
Indications of Quality	208	(4)
Fabric Content	208	(1)
Tailoring	209	(3)
The Powerful Fashion Industry	212	(1)
What's in a Name?	212	(1)
Government Regulation	212	(1)
The Cyber Consumer---Shopping for Fashion on the Internet	213	(1)
Choosing Durable Goods	214	(1)
Consumer Durables as an Investment	215	(1)
Evaluating the Purchase of a Consumer Durable	215	(4)
The Cost Side of the Picture	216	(2)
Benefits	218	(1)
Servicing Your Consumer Durables	219	(2)
Pros and Cons of a Service Contract	219	(1)
The ``90'' Rule	220	(1)
Before you Call a Service Person	220	(1)
Consumer Closeup---Rent-to-Own Agreements	221	(1)
The Special Case of Buying Furniture	221	(3)
Judging the Quality of Furniture	221	(1)
Choosing Where to Purchase Furniture	222	(1)
Purchasing Furniture over the Internet	223	(1)
What to Do When You Have a Complaint	224	(1)
Consumer Issue 10: Finding the Right Deal for a Consumer Durable	225	(5)
Getting There Is Half the Worry	230	(22)
We Depend on Cars in Many Ways	231	(1)
The Trend toward Safer Automobiles	231	(1)
Safety Requirements	231	(1)
Costs and Benefits of Safety Devices	232	(1)
Safety and Sobriety	232	(1)
The Social Costs of Driving	232	(1)
The Private Costs of Driving	233	(1)
The Repair Dilemma	233	(1)
The Cost of Depreciation	234	(1)
Getting Good Repairs	234	(1)
Deciding When to Buy	234	(1)
Deciding What You Want	235	(1)
Gathering Information	235	(1)
What Type of Car to Buy?	236	(1)
Options	236	(1)
Dealer Add-ons	236	(1)
Getting the Best Deal on a New Car	236	(2)
Buying through a Dealership	236	(1)
Location	237	(1)
Reputation	237	(1)
Service Facilities and Personnel	237	(1)
The Deal Offered	238	(1)
Sales Tactics	238	(1)
High-Balling	238	(1)
The Rational Consumer---Do You Have the Right to Know?	238	(2)
Low-Balling	239	(1)
Bushing	239	(1)
Car Shopping on the Internet	239	(1)
The Cyber Consumer---Purchasing Cars Online	240	(1)
Leasing versus Buying	240	(2)
How a Lease Works	241	(1)
Steps to Leasing	241	(1)
Should You Choose a Used Car?	242	(2)
Final Guidelines for Consumers	244	(1)
Financing That Purchase	244	(2)
Where to Borrow For a Car	244	(1)
What Length of Loan to Take Out	245	(1)
Know Your Lemon Laws	246	(1)
Arbitration Programs	247	(1)
Criticism of Industry Arbitration Panels	247	(1)
The Rational Consumer---Choosing the Right Repair	247	(1)
Consumer Issue 11: How to Avoid Fraudulent Car-Repair Practices	248	(4)
Putting a Roof over Your Head	252	(29)
Why Are We Willing to Pay So Much?	253	(1)
Renting versus Buying	253	(4)
Advantages of Renting	254	(1)
Advantages of Buying	254	(1)
Tax Benefits of Home Ownership	255	(1)
How Much Can You Afford?	255	(1)
Initial Costs	255	(1)
Monthly Costs	255	(2)
If You Decide to Buy	257	(2)
Looking on the Internet	257	(1)
What Does a Real Estate Agent Do?	257	(1)
For Whom Does a Real Estate Agent Work?	258	(1)
The Ethical Consumer---Conflicting Values and Sprawl Control	259	(3)
How to Bargain	259	(1)
Before You Sign Anything	260	(2)
Making the Offer	262	(1)
Title Examination and Insurance	262	(1)
Different Types of Homes	263	(2)
Condominiums	263	(1)
Townhouses	264	(1)
Cooperatives	264	(1)
Paying for Your Home	265	(1)
Sources of Mortgages	265	(1)
Comparison Shopping	265	(1)
Mortgage Talk	266	(1)
Discount Points	266	(1)
Prepayment Privilege	266	(1)
Amortization	266	(1)
Different Kinds of Mortgages	266	(1)
Conventional (Fixed-Rate) Mortgage	266	(1)
The Cyber Consumer---Mortgage Calculators on the Internet	267	(3)
Adjustable-Rate Mortgage	268	(1)
Graduated-Payment Mortgage	268	(1)
Rollover Mortgage	268	(1)
VA Mortgage	269	(1)
FHA Mortgage	270	(1)
Creative Financing	270	(1)
Mortgage Repayment Terms	271	(1)
The 15-Year Mortgage	271	(1)
Extra Payments	272	(1)
Biweekly Payments	272	(1)
Closing Costs	272	(2)
The Rational Consumer---Finding Rental Information	274	(1)
Consumer Issue 12: Renting a Home	275	(6)
Unit 4 Financial Management	281	(90)
Banks and the Banking System	282	(23)
Depository Institutions	283	(1)
Federal Reserve System	283	(1)
Structure and Powers of the Federal Reserve System	283	(1)
A Clearinghouse for Checks	284	(1)
Different Types of Checkable Accounts	284	(4)
Minimum Balance	285	(1)
Free Checking	286	(1)
Activity, or ``Per-Check,'' Plan	286	(1)
Package Plan	286	(1)
Overdraft Accounts	286	(1)
NOW and Super NOW Accounts	286	(1)
Money Market Deposit Accounts	286	(2)
Asset Management Accounts	288	(1)
Selecting the Right Account	288	(1)
Certified Cashier's and Traveler's Checks	289	(1)
Selecting the Right Bank---Beware before You Deposit	289	(1)
How to Avoid Banking Problems	290	(3)
Writing Check	290	(1)
Endorsing a Check	290	(1)
Stale Checks	291	(1)
Stop-Payment Orders	291	(1)
Deposit Holds	291	(1)
Avoiding Bounced Checks	292	(1)
Reconciling Your Bank Balance	293	(1)
How to Settle a Complaint with a Bank	293	(1)
Electronic Fund Transfer Systems	294	(3)
Types of Electronic Transfers	294	(1)
Automated Teller Machines	294	(1)
Point-of-Sale Systems	295	(1)
Preauthorized Direct Deposits and Withdrawals	295	(1)
Pay-by-Telephone System	295	(1)
Protection with Electronic Banking	296	(1)
Consumer Closeup---How Much Is Convenience Worth?	297	(1)
The Trend toward a Cashless Society	297	(1)
The Ethical Consumer---The Ethical Use of Cyberspace	298	(1)
The Cyber Consumer---Online Banking Services	299	(1)
Consumer Issue 13: Coping with Computerized Banking Services	300	(5)
The Indebted Consumer	305	(26)
The Indebted Society	306	(1)
Sources of Credit	306	(2)
Sources of Consumer Loans	306	(1)
Commercial Banks	306	(1)
Consumer Finance Companies	306	(1)
Credit Unions	307	(1)
Loans on Your Life Insurance	307	(1)
Other	307	(1)
Sources of Consumer Sales Credit	307	(1)
Automobile Dealers and Financial Services	307	(1)
Credit Cards	307	(1)
Credit Online	308	(1)
Why Borrow?	308	(1)
Saving versus Credit Buying	309	(2)
What It Costs to Borrow	311	(1)
Interest Rate Determination	311	(1)
Finance Charges	311	(1)
Consumer Credit Legislation	312	(1)
Truth-in-Lending	312	(1)
Consumer Closeup---A Tale of Woe	313	(1)
Regulation of Revolving Credit	313	(2)
Two-Cycle Method	315	(1)
Equal Credit Opportunity	315	(1)
Fair Credit Billing Act	316	(1)
Fair Credit Reporting Act	316	(1)
Fair Debt Collection Practices Act	317	(1)
The Cyber Consumer---Checking Your Credit History	318	(1)
Going into Personal Bankruptcy	318	(1)
Why So Many Bankruptcies?	319	(1)
The Ethical Consumer---Bankruptcy: Who's at Fault?	319	(1)
Filing for Chapter 7 Bankruptcy	320	(1)
Exemptions	320	(1)
Advantages and Disadvantages of Straight Bankruptcy	321	(1)
Chapter 13 Plans	321	(1)
Consumer Issue 14: Coping with the Credit Maze	322	(9)
Saving	331	(16)
Why Save at All?	332	(1)
What Determines How Much You Save?	333	(2)
Saving and Expected Rates of Inflation	333	(1)
Taxes and Saving	333	(1)
Your Savings Goals	334	(1)
Other Determinants of the Rate of Saving	334	(1)
The Nature of Compound Interest	335	(1)
Alternative Vehicles for Saving	336	(2)
Passbook Savings Accounts	336	(1)
Time Deposits	336	(1)
Why Use Time Deposits	337	(1)
Disadvantages of Time Deposits	337	(1)
Types of Time Deposits	337	(1)
Club Accounts and Bonus Savings Accounts	337	(1)
Certificates of Deposit	338	(1)
Floating-Rate Deposit Accounts	338	(1)
NOW and Super NOW Accounts	338	(1)
Money Market Deposit Accounts	339	(1)
U.S. Savings Bonds	339	(1)
Series EE Bonds	339	(1)
Series HH Bonds	340	(1)
I Bonds	340	(1)
Treasury Securities	340	(1)
The Cyber Consumer---Investigating Savings Option Online	341	(1)
How Much to Save?	342	(1)
Consumer Issue 15: Creating an Individual Savings Plan	343	(4)
Investing	347	(24)
The Simple Facts about Investing	348	(1)
The Risk and Rate of Return Tradeoff	348	(1)
Some Facts about the Stock Market	348	(1)
Common Stock	349	(1)
The Rational Consumer---Who Wins in an IPO?	349	(2)
Preferred Stock	350	(1)
Corporate Bonds	350	(1)
Capital Gains and Losses	351	(1)
What Affects the Price of a Stock?	351	(1)
Making Money in the Stock Market	351	(3)
Should You Employ a Full-Service Broker?	352	(1)
Choosing a Full-Service Stockbroker	352	(1)
Investing Online	353	(1)
What About Investment Advisers?	354	(1)
Mutual Funds	354	(3)
The Two Types of Mutual Funds	355	(1)
Money Market Mutual Funds	356	(1)
The Cyber Consumer---Checking Out Mutual Funds Online	357	(1)
Is There No Way to Get Rich Quick?	358	(1)
Watch for Those Sure-fire Schemes	359	(1)
The Global Consumer---Buy Them When They're Down	359	(1)
Pensions and Retirement Funds	360	(3)
Individual Retirement Accounts	360	(1)
Roth IRAs	360	(1)
Investing through 401(k)s	361	(1)
Keogh Plans	361	(2)
Consumer Issue 16: Making Personal Investment Plans	363	(8)
Unit 5 Risk Management	371	(74)
The Health-Care Dilemma	372	(28)
The Foundation of Insurance---Risk Pooling	373	(1)
Our Need for Medical Insurance	373	(1)
The Government Steps In	374	(1)
The Insurance Framework	374	(2)
The Supply of Medical Care	376	(2)
Restricted Entry	376	(1)
A Surplus of Physicians?	376	(2)
Drug Regulation and Its Costs	378	(1)
High-Tech Medicine	379	(1)
The Malpractice System	379	(1)
Who Can Afford the Medical Bill?	380	(1)
Consumer Closeup---Should You Have a Right To Know?	380	(1)
Health-Care Dilemma---or Crisis?	381	(1)
Tackling Waste and Inefficiency	381	(6)
Health Maintenance Organizations	382	(1)
HMO Legislation	382	(1)
The Pros and Cons of HMOs	382	(1)
Preferred Provider Organizations	383	(1)
Cost-Management Systems	383	(2)
Controlling Medicare Costs	385	(2)
Mandatory Health Insurance Coverage	387	(1)
Weaknesses in the Proposed Mandatory Plans	387	(1)
Potential Benefits of Universal Medical Insurance	387	(1)
The Ethical Consumer---What do You Do When Your Insurer Says No?	388	(1)
The Clinton Administration Tries but Fails	388	(2)
The Clinton Proposal	388	(1)
Why Congress Failed to Act	389	(1)
Health Care as a Consumer Product	389	(1)
The Cyber Consumer---Searching for Medical Insurance Online	390	(2)
Health Care as a Constitutional Right	390	(2)
Consumer Issue 17: Purchasing Medical Care	392	(8)
Insuring Your Home and Your Automobile	400	(19)
Insuring Your Home	401	(5)
Types of Homeowners' Coverage	401	(1)
Adding a Personal-Articles Floater Policy	402	(1)
Personal-Effects Floater Policy	402	(1)
Excess-Liability Policy	402	(1)
Flood Insurance	402	(1)
How Much Insurance Should You Have?	403	(1)
Periodic Review of Coverage	404	(1)
How to Save on Insurance	404	(1)
Homeowners' Warranties	405	(1)
What About Renters' Insurance?	405	(1)
Automobile Insurance	406	(1)
Liability Insurance	406	(1)
Medical Payment Insurance	407	(1)
The Cyber Consumer---Searching for Home Protection Online	407	(4)
Collision Insurance	408	(1)
Comprehensive Insurance	408	(1)
Uninsured Motorist Insurance	408	(1)
Accidental Death Benefits	408	(1)
What Determines the Price of Auto Insurance?	408	(2)
No-Fault Insurance, Pros and Cons	410	(1)
What is No-Fault?	410	(1)
No-Fault versus Liability---Which Is Better?	410	(1)
Consumer Closeup---Protecting Your Insurance Rights	411	(2)
How to Shop for Insurance	411	(1)
How to Lower Your Insurance Rates
The Special Problem of Insurance for Rental Cars	412	(1)
The Rational Consumer---Are Air Bags Really Safe?	413	(1)
When You Are Refused Insurance	413	(1)
Consumer Issue 18: Choosing a Lawyer	414	(5)
Life Insurance and Social Security	419	(26)
Life Insurance and Our Need for Security	420	(1)
Premature Deaths	420	(1)
History of Life Insurance	420	(1)
The Basic Types of Life Insurance	421	(1)
The Cyber Consumer---Searching for Life-Insurance Protection Online	422	(7)
Term Insurance	422	(1)
Renewability	423	(1)
Convertability	423	(1)
Whole Life Insurance	424	(1)
Premiums	424	(2)
Borrowing on Your Cash Value	426	(1)
When You Reach Retirement Age	426	(1)
Death Benefits	426	(2)
Universal Life Insurance	428	(1)
Some Specialized Insurance Policies	429	(1)
Combination Plans	429	(1)
Family Plan	429	(1)
Family Income Plan	429	(1)
Extra Protection Policy	429	(1)
Modified Life Policies	430	(1)
Adjustable Life Insurance	430	(1)
Other Types of Life-Insurance Policies	430	(1)
Group Insurance	430	(1)
Credit Life Insurance	430	(1)
Reading a Life-Insurance Contract	431	(1)
Consumer Closeup---Honesty Is the Best Policy	431	(1)
Choosing a Sound Life-Insurance Company	432	(1)
Involuntary Benefit Programs---The Case of Social Security	433	(5)
Basic Benefits of Social Security	435	(1)
How Social Security Is Paid	435	(1)
Working While Receiving Social Security Benefits	436	(1)
Problems with Social Security	436	(1)
There Will Always Be a Problem with Social Security	436	(2)
Consumer Issue 19: How to Meet Your Insurance Needs	438	(7)
Unit 6 Looking to the Future	445	(56)
Your Retirement Years	446	(21)
Planning for Your Retirement Years	447	(2)
The Importance of Financial Planning	447	(1)
Developing Other Interests	448	(1)
Staying Active	448	(1)
The Disposition of Your Property	449	(5)
What Is a Will and Why Should You Have One?	449	(1)
Limitations on Disposition of Property by Will	450	(1)
A Will Disposes of Only Certain Property	450	(1)
What Is Probate?	450	(1)
The Cost of Probate	451	(1)
Simplified Settlement Procedures	451	(1)
Joint Ownership	451	(1)
Joint Tenancy versus Tenancy in Common	452	(1)
Tenancy by the Entirety	452	(1)
Trusts	452	(1)
Life-Insurance Trust	453	(1)
Funded Trust	453	(1)
Testamentary Trust	453	(1)
Living Trust	453	(1)
Informal Bank Trust	453	(1)
Children's Trust	453	(1)
The Cyber Consumer---Searching for Will Preparation Advice Online	454	(1)
The Taxation of Wealth	454	(2)
Estate-and Gift-Tax Provisions	455	(1)
Marital Deduction	455	(1)
Annual Gift-Tax Exclusion	455	(1)
State Inheritance and Estate Taxes	455	(1)
The Pick-up Tax	456	(1)
What if You Become Incapacitated?	456	(1)
Durable Power of Attorney	456	(1)
Health-Care Power of Attorney	456	(1)
Living Wills	457	(1)
A Work about Organ Donation	457	(2)
Consumer Issue 20: How to Make Out Your Will and Plan for Your Funeral	459	(8)
Environmentally Responsible Consumer Behavior	467	(18)
Scope of the Problem	468	(1)
Dangers at Home	468	(1)
Dangers at School and in the Workplace	469	(1)
Consumer-Created Pollution	469	(2)
Diaper Debate	470	(1)
Tradeoffs between Vehicle Size and Safety	470
Problems with Packaging	70	(401)
Economic Causes of Pollution	471	(1)
Environmental Legislation	471	(3)
Environmental Protection Agency	471	(1)
Clean Air Act of 1990	472	(1)
State and Local Government Efforts	473	(1)
California's Car Emission Standards	473	(1)
New York's Solid Waste Disposal and Recycling Regulations	474	(1)
Who Pays the Cost of Environmental Protection?	474	(2)
Environmental Cleanups	475	(1)
``Not in My Backyard''	475	(1)
Environment as a Global Concern	476	(2)
Damage to the Ozone Layer	476	(1)
Greenhouse Effect	477	(1)
Consumer Closeup---Teaching Environmental Responsibility	478	(1)
The Cyber Consumer---Global Warming Information Online	479	(1)
Consumer Issue 21: Costs and Benefits of Living a ``Green'' Life	480	(5)
Consumers in a Changing World	485	(16)
What the Future May Hold	487	(1)
Globalization of the World's Economy	487	(3)
Benefits of Trade	488	(1)
Costs of Trade	489	(1)
Being a Responsible Consumer in the Global Economy	489	(1)
The Cyber Consumer---Buying Imported Goods Online	490	(1)
Who's Watching You?	491	(2)
Privacy in the Workplace	492	(1)
Privacy and Your Health	492	(1)
Consumer Closeup---When Your Boss Reads Your E-Mail	493	(2)
Privacy and the Government	493	(2)
Ethical Choices and Medical Technology	495	(2)
A Closing Thought	497	(4)
Index	501