Consumer Ed.
-Chapter 2
-Chapter 2
According to the textbook, it is estimated that _____ percent of purchased products are never used.
12%
Generation X is made of those people born between?
1965 - 1976
Approximately ___% of all US families are considered traditional households by the US census bureau
35
Who came up with the invisible hand theory?
Adam Smith
___________ is the founder of modern economics.
Adam Smith
Define opportunity cost and give an example.
Every choice made means that something else is given up. Ex. Tiger Woods dropped out of college to pursue golf
(T or F) A person acting in his/her own rational self-interest is selfish
False
Who is considered the father of modern consumer movement?
Harvey Wiley
President Clinton signed ___________ which had a large impact on trade and employment in certain industries, as well as an impact on prices
NAFTA
(T or F) Information search is a good idea, but can be costly.
True
Scarcity is...
a condition in which there is an insufficient amount of supply or shortage
_______ is characterized as a drastic and long lasting decline in the economy with high unemployment, failing prices, and decreasing business activity
a depression
Inflation is _______________________________.
a steady increase in prices
What are the five parts to the consumption process?
awareness, thinking, planning, implementing/acting, and evaluating
Antitrust laws prohibit...
business monopolies
The term caveat emptor translates to _______________.
buyer beware
A market economy is also referred to as....
capitalism
An economic system in which nearly all capital is collectively owned is called....
capitalism
What are some characteristics of Generation X's consumer behavior?
cares about the environment, likes lower prices, and a more functional look
Non-traditional households are different from traditional households in that they include ____________________________.
childless married, single parents, or adult live-ins
In a _________economy, most decisions about what, how, and for whom to produce are made by those who control the government.
command
The belief that goods give meaning to individuals and their roles in society is called ______________.
consumer economics
______________ refers to policies aimed at regulating products, services, methods, and standards of manufacture, selling, and advertising in the interests of the buyer.
consumer movement
Individuals or groups such as families who obtain, use, maintain, and dispose of products or services, to increase life satisfaction and fulfill needs are known as...
consumers
Consumer sovereignty means...
consumers decide which goods will survive and that producers cannot dictate consumer's tastes
The study of the human populations including characteristics such as size, growth, density, distribution, movement, and other vital statistics is called ___________________.
demographics
_____________ refers to the data used to describe populations or subgroups.
demographics
Consumer mediated environments refers to ___________.
e-commerce (electronic shopping)
What are the two parts to e-commerce?
e-merchandise: selling goods and services electronically and moving items through distribution channel e-finance: banking, debit cards, etc...done online
The study of or science of production, distribution, and consumption is known as ___________________.
economics
How might consumer style influence a clothing purchase?
economics, history, culture, personality, biology or environment, technology, and politics
Concern for the environment is known as ______________.
environmentalism
When supply and demand is equal, the _______________ is reached.
equilibrium price
The parts of the business cycle are _______________________________________.
expansion, recession, and recovery
The law of demand states that as the price of a good or service rises, the quantity demanded...
falls
The law of supply states that as the supply of a good or service goes up, the price...
goes down
A tangible object, something you can see and feel, like soap is considered a ______________.
good
In a ____________ economy exchanges are controlled by marketplace forces of supply and demand, rather than outside forces such as government control.
market
Things that are deemed necessary are called...
needs
Explain maslow's hierarchy of needs.
physiological needs, safety, belongingness and love, esteem, and self-actualization
The undesirable change in biological, chemical, or physical characteristics of air, land, or water that harms activities, health, or survival of living organism is called....
pollution
A __________ is anything a consumer acquires or perceives to need.
product
When people make choices that will give them the greatest amount of satisfaction at a particular time based on the information they have at their disposal, it is called...
rational self-interest
Unlimited wants combined with limited supplies create ________, a condition in which there is an insufficient amount or supply.
scarcity
Intangible actions like work done to satisfy or provide for others are called ___________.
services
The turn of the 19th-20th century was a time of great promise called...
the gilded age
What is consumer economics?
the study of how people deal with scarcity, fulfill needs, and select among alternative goods, services, and actions
Monopoly means...
there is one producer and no substitute
Things wished for or desired are called...
wants
