Unit 7

Consumer spending
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1. Vocabulary
2. Practice exercises
3. Exam practice
 1. Match the expressions a-h to the 3

segments 1-8 of the pie chart below

a. food and drink

c b. transportation
f
h a c. clothing and footwear

d d. entertainment
e. housing
b f. dining out
g
g. utilities
e
h. home furnishings
 2. Complete the sentences with the word
4
given
consumer goods disposable personal household
debt expenditure income confidence services

Disposable income

personal debt
goods and services

consumer confidence

Household expenditure
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3. Replace the words in italics in the sentences 1-6
with the more precise expressions a-f.
a. their necessities c. aspects of e. take action 
b. their possessions d. products f. advantages

1.1.People
Peopleoften
oftenbuy
buyproducts,
things, even when
even they
when do do
they notnot
need them. 
need them.
2. One of the interesting things about consumer behaviour is that it is often irrational.
2. One of the interesting aspects of consumer behavior is that it is often irrational.
3. People can do things to avoid getting into debt. 
3. People can take action to avoid getting into debt.
4. One of the good things about shopping online is the convenience. 
4. One of the advantages about shopping online is the convenience.
5. Often people's income barely covers the cost of the things that they need. 
5. Often people’s income barely covers the cost of their necessities.
6. People are often very attached to the things that they own.
6. People are often very attached to their possessions.
in response to the Task 2 question: How do people learn to6
manage their money? Complete the text with the words a-
g.
a. on credit c. financial e. behaviour  g. costly
b. quantity d. criteria f. saved 
Learning by example is one important method. From their early years, children can
observe how their parents make (1) _____________
financial decisions. They may notice, for
example, whether money is (2) saved _____________ for (3) _____________ purchases, or
costly
whether purchases are bought on(4) credit
_____________. Children can also see what kinds of (5)
_____________
criteria parents use when choosing what to buy, for instance, whether quality or
(6) _____________
quantity is more important. It is important, therefore, that parents model
sensible purchasing (7) _____________
behaviour and explain what they are doing and why.
However, in many circumstances, this may not be sufficient.
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THANKS!
Any questions?