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39 Cards in this Set
- Front
- Back
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your values will change ...
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as you grow and learn
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wants...
needs... |
are things you can live without
are things you can't live without ex: food, water, shelter |
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The Law of Demand says
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consumers demand more product at a lower price than a higher price
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Market economy...
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customers and business operate without much gov't interference
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business may have to increase the price of the product it is advertising...
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in order to pay for the advertising costs
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puffery...
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*is legal
*innocent exaggeration |
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the decision making process
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helps you approach buying decisions
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a business is guilty of deceptive advertising when
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an add is deliberately designed to mislead the consumer
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consumers...
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are users of goods and services
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consumer sovereignty...
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consumers have the power to determine how society uses its resources
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impulse purchase
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purchase made on a whim
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scarcity
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countries resources are not great enough to satisfy the consumers wants
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the customer is always
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right
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your values that are important to you in your everyday life
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life values
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your values that are important to you in your job
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work values
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competition...
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the contest among sellers to win customers
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the equilibrium price for a product is the price at which the quanity supplied is
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exactly equal to quanity demanded
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things you want to accomplish in your life
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goals
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the value of your next best alternative when you make a choice
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opportunity cost
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raw materials, labor, knowledge and equipment used to produce goods and services
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resources
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consumer economics
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the study of the role consumers play in an economic system
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government owns most of the country's resources and makes most of the country's economic decisions (Cuban economy)
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command economy
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the quanity a company is willing and able to produce is the
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supply
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when a business demonstrates the difference between their product and another leading competitors product to the consumer is considered
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comparative advertising
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the standards by which you live
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are your values
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5 step decision making process
(know these in this order) |
*specify
*search *sift *select *study |
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traditional economic system
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ways to produce products are passed from generation to generation
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command economic system
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government runs business and owns resources
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market economic system
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people own resources and run businesses
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mixed economic system
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combination of command and market
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brand advertising
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tries to get you to remember brand name
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persuasive advertising
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appeals to your emotions
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informative advertising
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educates you about product
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comparative adverising
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compares to competing product
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deceptive advertising
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deliberate lies, and is illegal
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defensive advertising
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responds to comparative ads
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puffery advertising
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innocent exaggeration, and is legal
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***be able to list***
a few examples of goods and services |
goods- cars, computers
services- auto mechanice, computer repair center |
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***be able to label the graph***
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*x-axis
*y-axis *demand curve *supply curve *price *quanity *equalibrium price |
