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42 Cards in this Set

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  • Back
individuals who purchase (or are given), use, maintain, and dispose of products and services in their final forum in an attempt to achieve the highest level of satisfaction possible with their income limitation.
the condition in which we are unable to provide enough products to satisfy all people's needs and wants because of our limited resources.
tangible objects that have the ability to satisfy human wants.
Opportunity cost
the value of the second-best choice that is given up when a first choice is taken
involves a sacrifice that must be a made to obtain something.
Voluntary exchange
transactions completed through the free will of those involved
the quantity of a product that will be purchased at each possible price.
the quantity of a product businesses are willing to offer for sale at each possible price.
Relative price
the price of a commodity expressed in terms of the price of another commodity or the (weighted) average price of all other commodities.
Money price
the price that we observe today terms of today's dollars. Also called the absolute, nominal, and current price
Market economy
an economy that is characterized by exchanges in markets that are controlled by the forces of demand and supply
Perfect competition
a market condition in which many businesses offer the same product for sale to many customers at the same price
Imperfect competition
a market condition in which individual businesses have some power to set the price and quality of their products
Web browser
a program that gives users the ability to search the Internet for specific types of information.
an economic system based on private ownership of the means and production and on a demand-and-supply market. This system emphasizes the absence of government restraints on ownership, production, and trade.
Rational consumer decision-making
making consumer decisions that maximize the satisfaction you can obtain from your time and money resources, and that assist you in attaining lifelong, as well as short-term goals.
Transaction costs
all the costs associated with completing an exchange beyond the price of the product that is purchased
Cost-benefit analysis
a way to reach decisions in which all the costs are added up, as well as all the benefits. If benefits minus costs are greater than zero, then a net benefit exists and the decision should be positive. Alternatively, if benefits minus costs are less than zero, then a net cost exists and the decision should be negative
fundamental concepts or high level preferences that regulate our behavior. High-level values determined and lower-level tastes, and preferences that affect our everyday lives
Life-span goal
a central goal that you wish to achieve within your lifespan
Internet service provider ISP
a business that provides subscribers with access to the Internet to local telephone or cable lines
Conspicuous consumption
consumption of goods more for their ability to impress others than for the inherent satisfaction, they yield
Parkinson's Law
work will expand to fit the time allotted for it.
Technological obsolescence
when products lose value, because they are technologically out of date rather than because their worn out.
Persuasive Advertising
Advertising intended to associate a specific product with a certain life-style or image in the minds of the consumers
The ability of producers to change price and/or quality without substantially losing sales
Informative Advertising
Advertising that simply informs
Comparative Advertising
Advertising that makes comparisons between a product and specific competing products
Defensive Advertising
Advertising intended to rebut claims made by competing firms about a firm's product or business practices
Bait and Switch
A selling technique that involves advertising a product at a very attractive price (the “bait”); then informing the consumer,once he or she is in the store,that the advertised product either is not available,is of poor quality,or is not what the consumer “really wants”; and finally,promoting a more expensive item (the “switch”).
Counter Advertising
New advertising that is undertaken pursuant to a Federal Trade Commission order for the purpose of correcting earlier false claims made about a product
Comparison Shopping
Acquiring and comparing information about different sellers and different products in order to find the best price for products of substantially the same quality.
Making a false statement with knowledge of its falsity, or with reckless disregard as its truth, with the intent to cause someone to rely on the statement and therefor give up something of value.
Pyramid Scheme
An illegal sales plan through which people collect fees and a share of income earned from sales made by other individuals they recruit into the program
Cooling-Off Period
A specific amount of time in which a consumer has the right to reconsider and back out of a transaction
Identity theft
A crime in which a thief uses a person's social security number and other information to assume the person's identity as a consumer, borrower, saver, and investor.
Antitrust Laws
Laws designed to prevent business monopolies. are part of government policies that are aimed at establishing and maintaining competition in the business world to assure consumers of fair prices and goods of adequate quality
Common Law
The unwritten system of law governing people's rights and duties, based on custom and fixed principles of justice. is the foundation of both the English and the U.S. Legal systems (excluding Louisiana , where law is based on the Napoleonic Code
Consumer Redress
The right of consumers to seek and obtain satisfaction for damages suffered from the use of a product or a service; protection after the fact.
Cease-and-desist order
An administrative or judicial order commanding a business firm to cease conducting the activities that the agency or a court has deemed to be “unfair or deceptive acts or practices.
Implied warranty of merchantability
An implicit promise by a seller that an item is reasonably fit for the general purpose for which it is sold
Implied warranty of fitness
a seller guarantees the product for the specific purpose for which a buyer will use the goods, when the seller is offering his or her skill and judgment as to suitable selection of the right products.