Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
138 Cards in this Set
- Front
- Back
|
study or science of production, distribution, and consumption according to Goldsmith
|
economics
|
|
|
study of how society manages its scarce resources according to Miller
|
economics
|
|
|
society has limited resources and therefore cannot produce all the goods and services people wish to have
|
scarcity
|
|
|
scarcity implies ___, and choice implies ____
|
choice, cost
|
|
|
economists study...
|
-how people make decisions
-hoe people interact with each other -the forces and trends that affect the economy as a whole |
|
|
study of how people deal with scarcity, fulfill needs and select among alternative goods, services and actions
|
consumer economics
|
|
|
individuals and groups who obtain, use, maintain, and dispose of goods and services to fulfill needs and increase satisfaction
|
consumers
|
|
|
tangible objects
|
goods
|
|
|
intangible actions of work done
|
services
|
|
|
well-being, satisfaction
|
utility
|
|
|
person who said "consumers act in their own interest and markets work with the invisible hand"
|
Adam Smith (1776)
|
|
|
-founder of economics
-felt consumers should be given the freedom and authority to run their own economic affairs |
Adam Smith
|
|
|
social system based on the recognition of individual rights
|
capitalism
|
|
|
the belief that goods give meaning to individuals and their roles in society
|
consumerism
|
|
|
the barest minimum physical necessities that allow you to survive
|
needs
i.e. food, water, air |
|
|
physical, safety, relational, esteem, self-actualization
|
Maslow's Hierarchy of Needs
|
|
|
what people would acquire if their resources were unlimited
|
wants
|
|
|
things used to produce other things to satisfy people's needs and wants
|
resources
|
|
|
two types of resources
|
material and human resources
|
|
|
not enough resources are available to satisfy one's needs and wants and their choices have to be made about their use
|
scarcity
|
|
|
economic rule stating that the quantity demanded and price move in opposite directions
|
law of demand (miller)
|
|
|
the amount of goods which would be demanded at a particular price
|
quantity demanded
|
|
|
any goods for which demand increases when income increases and falls when income decreases, all other things being equal.
|
normal good
|
|
|
good that decreases in demand when consumer income rises
|
inferior good
|
|
|
special type of inferior good that disobeys the law of demand
|
giffen good
|
|
|
price at which the quantity demanded of a good equals the quantity supplied
|
equilibrium
|
|
|
temporary moderate decline or downturn in economy, declining output, income, employment and trade.
|
recession
|
|
|
when economic activity picks up after a recession, leading to expansion
|
recovery
|
|
|
measure of the value of all goods and services newly produced in a country durinng some period of time (usually a year), adjusted for inflation
|
real gross domestic product (GDP)
|
|
|
the steady increase of prices
|
inflation
|
|
|
indicates falling prices
|
deflation
|
|
|
prosperity, growth, high output, low unemployment, increased retail sales and housing
|
expansion
|
|
|
periodic fluctuations of economic activity
|
business cycle
|
|
|
awareness-what are our needs/wants?
thinking-gather info planning- shop around implementing- buying evaluating- would you re-purchase? |
consumption process
|
|
|
total amount of a specific good or service that is available to consumers
|
supply
|
|
|
-economics
-history -consumer culture -individual traits -physiological needs -technology -governmental regulation |
7 factors that influence consumers
|
|
|
price changes affect the ____ but do not affect the overall ____
|
quantity supplied, supply
|
|
|
-change in price of related goods
-change in price of inputs -technological advances |
change in supply curve- shift
|
|
|
ability or willingness of consumers to buy a particular commodity at a given point of time
|
demand
|
|
|
a ___ lets us know that something is needed or desired
|
stimulus
|
|
|
a broken computer making us aware that a new one is needed is an example of ___
|
stimulus
|
|
|
deciding ordered steps of action needed to purchase a reality is an example of ___
|
planning
|
|
|
-unemployment rate
-interest rate -inflation rate |
factors of economics influencing consumers
|
|
|
the way people live in accordance to beliefs, language, history, ot the way they dress
|
consumer culture
|
|
|
-thirst
-hunger -safety -housing -protection |
physiological needs
|
|
|
when consumers decide which goods will survive and to the idea that producers cannot dictate consumer tastes
|
consumer sovereignty
|
|
|
consumer sovereignty exists when there is ____
|
perfect competition
|
|
|
the idea of minimizing government intervention in the marketplace
|
invisible hand
|
|
|
people will make choices that will give them the greatest amount of satisfaction based on the info available
|
rational self interest
|
|
|
dominant theoretical paradigm in economics
|
rational choice theory
|
|
|
when a person pays an extremely high price for a product for its prestige value
|
conspicuous consumption
|
|
|
a high standing achieved through success or influence or wealth
|
prestige
|
|
|
persistent market situation where there is only one provider of a product of service
|
monopoly
|
|
|
___ do not protect consumers, take choice out of consumer's hands, do not have to provide good/safe products
|
monopolies
|
|
|
policies aimed at regulating products, services methods and standards of manufacture, selling, advertising in the interests of the buyer
|
the consumer movement
|
|
|
-elderly
-youth -poor -rich |
examples of at-risk consumers
|
|
|
guy who took money from rich friends promising 100% return and reallocates the money back and forth.
|
bernie madoff
|
|
|
"consumer movement consists of the organized efforts of individual citizens and private, nonprofit organizations to enhance the rights and collective welfare of consumers"
|
Herrmann & Mayer
|
|
|
to advance efficiency and equity in the marketplace
|
primary goal of consumer movement
|
|
|
"unsafe at any speed"
details his claims of resistance by car manufacturers to the introduction of safety features |
Ralph Nader
|
|
|
person behind worker's rights, equal pay for equal work, truth in advertising
|
Esther Peterson
|
|
|
person instituted nutrition labels and 'sell before' labels
|
Esther Peterson
|
|
|
regulate the price, entry, exit and service of an industry
|
economic regulations
|
|
|
adress health, safety, employment fairness, environmental quality
|
social regulations
|
|
|
-international consumer protection and enforcement network
-international consumer rights protection -FTC offive of international affairs |
examples of consumer movement worldwide
|
|
|
US exported ____ worth of garbage to China
|
60 billion
|
|
|
-safe, reasonably priced products
-accurately labeled -right to complain and be satisfied |
demands of consumer movement
|
|
|
asked for equal pay for women teachers and helped found the american equal rights association in 1866
|
Susan B Anthony
|
|
|
first women's rights meeting
|
Seneca Falls, New York 1848
|
|
|
first woman in MA to achieve college degree, first woman to marry and keep her last name
|
Lucy Stone
|
|
|
person insisted that the word 'obey' be dropped from marriage ceremony
|
elizabeth cady
|
|
|
law allowing women to vote, date.
|
19th amendment
august 26, 1920 |
|
|
first woman to run for president, year
|
victoria woodhull in 1872
|
|
|
colorful and notorious symbol for women's rights, free love, and labor reforms
|
victoria woodhull
|
|
|
the children's rights movement started with the ____
|
orphan train
|
|
|
in 1852, ____ required children to attend school
|
Massachusetts
|
|
|
in 1906, legislature set the max hours of labor for children at ___ a week and made list of dangerous occupations prohibited for children under 16
|
55 hours
|
|
|
-rapid industrialization
-could no longer depend on past experiences to judge goods -corruption in business and gov't, schemes to eliminate competition, control prices |
pre-industrial/industrial movement revolution
|
|
|
first consumer's league formed by ___ in ___
|
reformers, 1891
|
|
|
american journalist who attempted to expose the abuses of business and the corruption in politics
|
muckrakers
|
|
|
-food preservation
-poision squad- volunteers fed food adulterants to see affect |
Dr. Harvey Wiley of US Dept. of Agriculture
|
|
|
"The Jungle". fictional expose of working conditions in Chicago meat packing industry
|
Upton Sinclair
|
|
|
president support of meat inspection act
|
theodore roosevelt
|
|
|
adresses issues of railroad abuse and discrimination
|
interstate commerce act of 1887
|
|
|
prohibits trusts (concentration of economic power in large corporations)
|
sherman antitrust act of 1890
|
|
|
meat inspection act ended by the world war 1 economic hardship
|
food and drug act of 1906
|
|
|
group formed by Schlink to do product research in 1920's
|
Consumer's research group
|
|
|
book by Kallet and Schlink saying that peopole used as guinea pigs by american producers of food and medicines
|
100, 000, 000 guinea pigs, 1933
|
|
|
FDA travelling exhibit showcasing unsafe cosmetics and adulterated food
|
american chamber of horrors 1936
|
|
|
mass poisioning in US causing more than 100 deaths
|
the elixir sulfanilamide of 1937
|
|
|
first special assisitant for consumer affairs for president johnson
|
esther peterson
|
|
|
book calling for less emphasis on production and more on public service
|
affluent society by john kenneth galbraith
|
|
|
regulates communications by radio, tv, wite, and satellite and cable
|
federal communications commission of 1934
|
|
|
__ sold __ as a superior cough suppressant
|
bayer, heroin
|
|
|
person founded a company to supply ether and choloroform to the US navy
|
edward robinson squibb
|
|
|
an aniline eyelash dye introduced in __ that caused 16 cases of blindness and one death
|
lash lure 1930's
|
|
|
consumer message in 1962 enunciating 'consumer bill of rights' person
|
kennedy
|
|
|
right to...
-safety -to be informed -to choose -to be heard by the government |
consumer bill of rights
|
|
|
established in ___ to protect the public from unreasonable risk of injury caused by consumer products
|
1972, consumer product safety commission
|
|
|
charged with ensuring that processed foods, drugs, medical devices and cosmetics are safe and properly labeled; that foods are wholesome and that drugs are effective`
|
food and drug administration FDA
|
|
|
requires that packages be labeled truthfully with such basic facts as quantity and ingredients
|
fair packaging act of 1967
|
|
|
requires that people be told in clear, accurate and uniform terms how much it costs them to borrow money from a lender
|
truth in lending act of 1968
|
|
|
group bearing primary responsibility for making sure that advertising and labeling are not false or misleading
|
federal trade commission FTC
|
|
|
business association that makes info about complaints it has received againast businesses available to interested parties
|
the better business bureau
|
|
|
book inspired widespread public concerns with pesticides and pollution of the environment
|
the silent spring 1962
|
|
|
required drug companies to register with FDA
|
Kefauver-Harris Drug Amendment of 1962
|
|
|
-concern about health care costs
-security issues -retirement issues -environmental issues |
consumer focus in future
|
|
|
act that regulates interest rate hikes, sets fee caps, sets age limits, controls funky wording, prevents double billing cycle
|
credit card act of 2009
|
|
|
reforms certain aspects of private health insurance- increase insurance coverage of pre-existing conditions and expanding access to insurance to over 30 mil americans
|
patient protection and affordable care act of 2010 (PPACA)
|
|
|
person chosen to set up new consumer financial protection bureau
|
elizabeth warren
|
|
|
director of new consumer financial protection bureau
|
general richard cordray
|
|
|
adam smith's philosophy
|
free exhange
|
|
|
john maynard keynes' philosophy
|
government intervention
|
|
|
economists generally agree- consumers are __ and __
|
rational/ acquistive
|
|
|
introduve psychologyically realistic models of economis agents into economic theory
|
behavioral economists
|
|
|
balanced weighing up of evidence preparatory to making a decision
|
judgment
|
|
|
physiological response that expresses an individual's preference for an entity
|
affective response
|
|
|
verbal indication of the intention of an individual
|
behavional intention
|
|
|
a cognitive evaluation of the entity to form an attitude
|
cognitive response
|
|
|
attitudes are expected to change as a function of ___
|
experience
|
|
|
an organized system of ideas or beliefs that can be measured
|
theory
|
|
|
-exploration
-description -explanation -develop model -validate (test) |
steps to a theory
|
|
|
based on beliefs and attitudes, has consequences and takes place within a social context
|
consumption
|
|
|
based on motivation to comply with normative beliefs
|
behavioral intentions
|
|
|
person's degree of pleasure is more dependent on the change in his or her condition than the absolute level
|
prospect theory
|
|
|
human behavior (attitudes/values) affects what peopel set as appropriate prices for our goods and services
|
theory of mental accounting
|
|
|
earliest buyers of new brands, services, products, or other market offering
|
innovators
|
|
|
the satisfaction one receives from the use of a product, service or idea
|
utility
|
|
|
in a given period of time, a consumer will receive less satisfaction from each successive unit consumed
|
law of diminishing marginal utility
|
|
|
-public policy
-media -internet -technology -environment -consumer organizations |
consumer market exchange model
|
|
|
-economic
-physcial -social -psychological -environment |
people seek these types of well-being
|
|
|
-quality of life
-level of living -standard of living -lifestyle -human development index score |
quanitfying/measuring well being
|
|
|
the way consumers are actually living
|
level of living
|
|
|
the way consumers aspire to live
|
standard of living
|
|
|
how one lives and includes patterns of time use and living space
|
lifestyle
|
|
|
quantifies well-being and measures the progress of nations by standardizing comparisons across the globe
|
human development index
|
|
|
measures prices each month of a fixed basket of goods and services bought by the typical consumer
|
consumer price index
|
|
|
how consumers view the health and direction of the economy
|
consumer confidence
|
