34.210A Consumer Economics
Spring 2004

Professor: Susan J. Massad, H.S.D., R.D.
Course Hours: Monday & Wednesday 2:30–4:20 p.m.

Office Hours (HH120): Monday, Wednesday, 11:00-12:30

Tuesday, 9:30-10:20 a.m.

Friday, 10:30-11:30 a.m., other hours by arrangement

Telephone: 626-4743 (on campus, ext. 4743)

Web site: http://www.framingham.edu/faculty/smassad

Department home page: http://www.framingham.edu/nutrition

Blackboard.com account: http://framingham.blackboard.com/. Create an account – in the course search box enter 34210 for Consumer Economics page. Please check this daily for announcements.

Course Description: Designed to make the student a more intelligent consumer, considering basic economics concepts as they relate to consumer decision-making. Topics to be considered are consumerism, to dual role of the consumer in our economy, consumer problems, consumer demand, advertising, the budget, credit, saving, investing, insurance, housing, fraud and deception in the marketplace, and consumer protection

Objectives:

1. Describe the how the American market system functions with respect to the global economy

Describe the impact of American global economic institutions upon consumer choice, information, safety, and redress
Express how consumer behavior impacts American and international economics
Explain the impact of consumer practices on the environment
Develop skill in utilizing consumer information
Describe the steps involved in obtaining a bank loan
Describe the steps involved in setting up a home mortgage
Compare and contrast health insurance policies
Compare and contrast automobile and home owner’s insurance policies
Explain the function of governmental regulating agencies for consumer protection (e.g. the Office of Consumer Affairs)
Describe steps that can be taken to avoid being a victim of consumer fraud
Compare and contrast various methods of saving money (e.g. savings and checking accounts, stocks, bonds, Money Market accounts, retirement funds)
Explain the basic aspects of life insurance and social security

Methods:
This course will consist of lectures, discussions, assignments and some applied experiences, such as (but not limited to): laptop web searches, analysis of product labels, participation in formal debates, and examining warranties.

Required materials:

Text: Miller, Roger LeRoy and Alan D. Stafford (2003), Economic Issues for Consumers, 10^th edition, Wadsworth/Thompson Learning, Belmont, CA

Federal Consumer Information Center (2003/2004), The Consumer Action Handbook

(This is a free publication that will be supplied by Professor)

Student responsibilities and course requirements:

Regular attendance. Greater than two unexcused absences will result in a 5-point deduction from your total number of points earned, for each class missed. (See section on grading). Notification from Ms. Deb Dalton, whose office is in Peirce Hall (CASA), is required for an excused absence. If a class is missed, please see me about handouts you that may have been given out on the dates you were out.
Completion of 3 non-cumulative exams.
Please note: Make-up exams will not be given if you fail to attend class on
the exam date without an excused absence.
Participation in class discussion. The format of this class will be split between lecture and small group discussion.
Completion of all assignments:*

A. A formal in-class debate on single payer health care versus private insurance

B. Mathematical formula worksheets (one on Consumer Price Index and one on automobile loans and mortgages)

C. One research paper on criteria involved in making a major purchase (comparison and contrasting of brands, Consumer Reports ratings, costs, warrantees)

D. One letter of complaint to a manufacturer or business

E. Consumer Issue review

* Specific details will be given on separate handouts

Please note:

A. All papers handed in must be computer word-processed.

B. If an assignment is turned in late, there will be a 5% deduction for every
day late. Late papers will not be accepted beyond the last day of classes.

Course evaluation:
Exams (3): 100 points each

Debate: 25 points

Mathematical formula worksheets (2): 15 points each

Research paper on major purchase: 50 points

Letter of complaint to a manufacturer or business: 25 points

Consumer Issue review: 20 points

Total points: 450

Grade:
A          420-450
A-         405-419
B+        390-404
B          375-389
B-         360-374
C+        345-359
C          330-344
C-         315-329
D+        300-314
D          285-299
D-         270-284
F          <270
Exam dates and assignment due dates:

Exam I: Wednesday, March 3rd

Exam II Wednesday, April 7th

Exam III (Final exam): Friday, May 14^th at 9 a.m.

Research paper on major purchase: Wednesday, March 31st

Debate: Wednesday, April 14th

Mathematical formula worksheets (2): various dates by arrangement

Letter of complaint to a manufacturer or business: Wednesday, March 10th

Consumer Issue review: various dates by arrangement

_____________________________________________________

Other pertinent information:

Disabilities: Students requiring special accommodations due to a disability should contact Dr. Massad during the first week of classes.
Plagiarism and cheating: Students who plagiarize (copy) or who cheat in class risk
formal action that may result in a loss of credit for the assignment or exam in question.
Cell phones and beepers must be turned off prior to class.
Please plan ahead. The major purchase paper (see 4. C on the previous page) is a time-consuming project. Begin your research early in the semester. I do not give extensions.

________________________________________________________

Week of: Topic and assigned reading:

1/26 Economic foundations of consumer decisions

Scarcity, supply and demand, use of the internet

Ethics and the Consumer

Readings: Chapter 1
Examine Office of Consumer Affairs and Business Regulation: www.state.ma.us/consumer/

2/2 Rational consumer decision-making, decisions, values, time management

Buying technology-based products (Consumer Issue 2)

Readings: Chapter 2

Consumer Action Handbook section on education and employment: pp 8-9

Video: Macroeconomic Concepts (United Learning, Inc.)

2/9 Advertising and its impact on the consumer, brand name versus generic

Bait and switch tactics, consumer Protection, antitrust laws

Laws and governmental regulatory agencies to protect the consumer
Fraud: personal and health-care fraud, protection from fraudulent advertising

Internet fraud, privacy

Readings: Chapter 3 and 4

Also read FTC rules on advertising: http://www.ftc.gov/bcp/menu-ads.htm

If time permits, video: Advertising and the End of the World (Media Education Foundation, 2001)

2/16 (No classes Monday 2/16 - President’s Day)
Consumer protection, Federal consumer protection laws; private sector consumer protection

Wages and salaries, inflation and its effects, non-money income

Readings: Chapters 5 and 6

Consumer Action Handbook section on privacy, pp 26-32
Also read US Department of Justice “Antitrust Enforcement and the Consumer: http://www.usdoj.gov/atr/public/div_stats/9142.htm and Bureau of Labor Statistics Web Page: http://data.bls.gov/cgi-bin/surveymost?cu

Consumer Price Index - Math worksheet # 1

2/23 Budgeting and spending plan, consumer credit counseling resources

Government: the whys and hows of taxation

Personal federal income tax, tax assistance and the IRA

Readings: Chapters 7 and 8 and The Internal Revenue Service Web Page, Understanding Taxes:

http://www.irs.gov/app/understandingTaxes/jsp/teacher_home.jsp

3/1 The Diet Industry

Labeling and inspection requirements

Genetically modified foods, food additives

Shopping for a weight loss program

Readings: Chapter 9
Video: ABC News Report: Peter Jennings: How to get fat without really trying (aired on 12/8/03)

3/8 Household products, clothing and fashion industry, furniture

Find the right “deal” for consumer durables

Reading: Chapter 10

Purchasing an automobile

Automobile safety, new car versus used car

Automobile insurance

Readings: Chapter11 and Massachusetts Consumer’ Coalition, Car smart: A consumer’s guide to buying, leasing, and repairing a car in Massachusetts (Booklets distributed in class)

Consumer Action Handbook chapter on cars: pp3-8

3/15 Spring break week

3/22 Video: Rollover: The hidden history of the SUV (Front Line, PBS, 1999)
Housing: Rent versus ownership

How to set up a mortgage

Banks and the banking system

Savings and interest

Acquiring a bank loan

Readings: Chapters 12-13 & The Massachusetts Affordable Housing Review (July 2001) http://www.chapa.org/MassachusettsHousingAffordabilityReview.htm

Consumer Action Handbook section on housing: pp. 13-15

Math worksheet # 2

3/29 Consumer debt, sources of credit, truth-in-lending laws, filing for bankruptcy

Savings and interest rates, compound interest
Investing, the stock market, stocks, bonds, mutual funds

Pensions and retirement plans
Video: A penny saved. How to grow money (The Learning Seed, 2000)

CD Rom: Investing: from risk to reward (Meridian Education Corp., 2002)

Readings: Chapters 14 and 15 and Massachusetts Bankruptcy Laws:

http://www.massachusettsbankruptcylaw.com/exemptions.html

Consumer Action Handbook section on credit, pp 18-25

4/5 The Health care dilemma (private health insurance, Health Maintenance Organizations, Single Payer Health Care, Should medicine be “socialized?”)

Readings: Chapter 16, Consumer Action Handbook section on health and health insurance pp 10-13

The Massachusetts Campaign for Single Payer Health Care: http://www.masscare.org/

Physicians For National Health Care: http://www.pnhp.org/hcinfo/

4/12 Debate: Private versus Single Payer Health Care
Homeowner’s and Automobile insurance

Types of coverage

Protecting your insurance rights

Airbags: pros and cons

Readings: Chapter 17

4/19 No classes Monday (Patriot’s day)
Life Insurance and Social Security

Criteria for choosing a life insurance policy

Planning for retirement

Wills, probate, trusts, taxation of wealth

Readings: Chapters 18
Social Security Administration web site: http://www.ssa.gov

4/26 Environmentally responsible consumer behavior

Environmental legislation

The greenhouse effect

U.S. E.P.A.: Global Warming:

http://yosemite.epa.gov/oar/globalwarming.nsf/content/Climate.html

Globalization of the world economy

Buying imported versus domestic goods

Reading: Chapter 19 and World Bank Group: Globalization, Growth and Poverty: Building an Inclusive World Economy:

http://www1.worldbank.org/economicpolicy/globalization/

5/10: Final exam week (our final is Friday, 5/14 at 9:00 a.m.)