University of South Alabama

• EH 102

• Total Points: 50 Using what you have learned from the first two lessons in this course, answer the following questions. 1. What is the difference in a need and a want? Write your response below: A need is something necessary for survival. A want is not necessary and is purchased for  pleasure. 2. What is discretionary income? Write your response below: The income left for “wants” after taxes and the necessities are deducted from the full  income. 3. Compare the operation of a big box store to a small business. Write your response below: A big box store provides a competitive price range for products and has the financial  power and resources to buy more product than a small business. The ability to display  more products and high stock allow big box stores to make more money than a small  business which can only buy to their financial extent, paying more than the big box store  and have to charge the consumer more.  4. Explain how a small business can compete with a big box store to be successful. Write your response below: