Hace 3100 Test 1

Front 1

business cycle

Back 1

the normal cyclical expansion and contraction of the economy

Front 2

capitalism

Back 2

an economic system characterized by open competition in a free market

Front 3

caveat empor

Back 3

a latin phrase: may the buyer beware

Front 4

command or centrally controlled economy

Back 4

an economy in which most decisions about what, how, and for whom to produce are made by those who control the government

Front 5

communism

Back 5

a social or economic system in which nearly all capital is collectively owned

Front 6

consumer-mediated environment

Back 6

the process of buying or selling over the internet

Front 7

consumers

Back 7

individuals or groups such as families who obtain, use,maintain and dispose of products and services to increase life satisfaction and fulfill needs

Front 8

consumer sovereignty

Back 8

the assumption that the customer is king by deciding which goods will survive because producers cannot dictate consumer tastes

Front 9

consumer style

Back 9

the totality of a consumers economics, history, culture, personality, biology or environment, technology, and politics or political climate

Front 10

deflation

Back 10

a general decline in prices

Front 11

demographics

Back 11

the information and data used to describe populations or subgroups

Front 12

demography

Back 12

the study of human populations, including characteristics such as size, growth, density, distribution, movement and other vital statistics

Front 13

e-commerce

Back 13

any exchange transaction that takes place on the internet

Front 14

economics

Back 14

the study or science of production, distribution and consumption

Front 15

equilibrium price

Back 15

the price that is reached when supply and demand for a product or service are equal

Front 16

expansion

Back 16

a period of prosperity marked by growth, higher output, low unemployment, increased retail sales, and increased housing sales that is the preferred stage in the business cycle

Front 17

goals

Back 17

end results; also things people strive for

Front 18

household

Back 18

a group of related family members and all the unrelated persons who share a housing unit

Front 19

inflation

Back 19

a steady increase in prices

Front 20

injurious consumption

Back 20

a decision to consume that has negative consequences or that misuses products in such a way as to cause injury to the consumer or to others

Front 21

law of demand

Back 21

a rule stating that as the price of a good or service rises, the quantity demanded of that good or service falls

Front 22

law of supply

Back 22

a rule stating that as the supply of a good or service goes up, the price comes down

Front 23

loss aversion

Back 23

the avoidance of risk; also the fear of loss

Front 24

market economy

Back 24

an economy where exchanges are controlled by marketplace forces of demand and supply rather than by outside forces (ex-govt control)

Front 25

monopoly

Back 25

the situation where there is only one producer of a product or service and there is no substitute for a product or service

Front 26

needs

Back 26

things that are deemed necessary

Front 27

opportunity

Back 27

a favorable outlook; also a chance for progress, advancement, and action

Front 28

opportunity cost

Back 28

expenses incurred or attached when one alternative is selected over other choices

Front 29

price

Back 29

the amount of money a person pays to buy or use a product

Front 30

product

Back 30

anything a consumer acquires or perceives to need

Front 31

property rights

Back 31

legal rights over the use, sale, and proceeds from a good or resource

Front 32

real gross domestic product (real GDP)

Back 32

a measure of he value of all the goods and services newly produced in a country during some period of time, usually a year or a quarter, adjusted for inflation

Front 33

recession

Back 33

a temporary and moderate decline or downturn in the economy

Front 34

recovery

Back 34

a period in the business cycle when economic activity picks up, leading to expansion

Front 35

risk

Back 35

the possibility or perception of harm, suffering, danger or loss

Front 36

scarcity

Back 36

a condition where there is an insufficient amount or a shortage in supply or a product or service

Front 37

socialism

Back 37

an economic system in which the government centrally plans, owns, and controls most of the capital and makes decisions about prices and quantities

Front 38

trade-offs

Back 38

anything that is sacrificed (or traded) in order to obtain something else

Front 39

wants

Back 39

things wished or desired for

Front 40

antitrust laws

Back 40

regulations to prevent business monopolies

Front 41

bricks and clicks

Back 41

a store or business (ex-bank) that has a physical as well as an online presence

Front 42

cease-and-desist order

Back 42

an administrative or judicial order to a business to stop its unfair or deceptive acts or practices

Front 43

common law

Back 43

an unwritten system or rights of buyers and competitors that is the foundation of both the US and english legal systems

Front 44

conspicuous consumption

Back 44

the act of people who pay an extremely high price for a product because of its prestige value, leading to a much higher demand for the product

Front 45

consumer movement

Back 45

a movement that refers to policies aimed at regulating products, services, methods, and standards of manufacturing, selling, and advertising that are in the interests of the buyer

Front 46

depression

Back 46

a drastic and long-lasting decline in the economy characterized by high unemployment, falling prices, and decreasing business activity

Front 47

environmentalism

Back 47

a concern for the environment

Front 48

hucksterism

Back 48

an act of extreme promotion

Front 49

muckracker

Back 49

a person (ex-writer, politician, journalist, public speaker) who searches out and exposes political or commercial corruption

Front 50

pollution

Back 50

any undesirable change in biological, chemical, or physical characteristics of air, land or water that harms activities, health, or survival of living organisms

Front 51

rational self interest

Back 51

a mindset that selects choices giving the greatest amount of satisfaction at a particular time based on known information

Front 52

acquisitiveness

Back 52

a trait meaning a strong desire for things, ideas, and information

Front 53

behavioral economics

Back 53

a specialization within economics that emphasizes the impact of psychological or behavioral factors

Front 54

behavioral finance

Back 54

a specialization within economics that emphasizes saving and investing behaviors (accumulation fo wealth) related to personal finance

Front 55

brand extension

Back 55

the addition of a new product to an already existing brand to satisfy a consumer need

Front 56

consumer confidence

Back 56

a measure of customer well-being by the conference board and the university of michigans survey research center

Front 57

consumer durables

Back 57

products bought by consumers that are expected to last three years or more, including cars, appliances, and furniture

Front 58

consumer expenditure survey

Back 58

the published result of data collected by bureau of labor statistics that provides detailed information on spending habits

Front 59

consumer in control movement

Back 59

a movement that refers to consumers wanting more say not only in designing ads and promotions but also in creating the products and services which can happen when companies ask consumers to vote on ads or products

Front 60

consumer market conflict

Back 60

a situation where one side, either the customer or the seller, is not satisfied with the exchange

Front 61

consumer power model

Back 61

a model incorporating many economic theories that is designed to show the constant motion of the activities and exchanges of the parties involved in marketplaces.

Front 62

consumer price index (CPI)

Back 62

an index that measures monthly prices of a fixed basket of 400 goods and services (durables and nondurables) bought by a typical consumer

Front 63

consumption

Back 63

the use of goods by consumers

Front 64

customization

Back 64

the process of individually tailoring a product because consumers want uniqueness

Front 65

diminishing marginal utility

Back 65

the decrease in satisfaction that a buyer experiences from each successive unit consumed in a given period of time

Front 66

endowment effect

Back 66

the theory that if people are given something (ex a present) they will think it is worth more than someone who has not received the item because people put a value on what they own

Front 67

entrepreneurs

Back 67

unique industry changing leaders who relentlessly pursue new business opportunities

Front 68

exchange process

Back 68

the procedure people go through when they negotiate with a goal of reaching an agreement

Front 69

human development index (HDI)

Back 69

a measurement that quantifies quality of life and compares the progress of nations by combining several measures of well being

Front 70

innovators

Back 70

people or a group of people who created a newly introduced product or method

Front 71

level of living

Back 71

the way consumers are actually living

Front 72

lifestyle

Back 72

the sum of a persons life choices, including pattern of time use, type of living space, values and issues considered important, and ways of spending money

Front 73

market mavens

Back 73

consumers who are very involved in the marketplace by spreading the word about a product or service

Front 74

mass consumption

Back 74

the action of millions of consumers making similar choices that has a tremendous impact on the general economy

Front 75

media

Back 75

means of mass communications (ex-radio, paper, magazines)

Front 76

message framing

Back 76

the choice of positive or negative communications

Front 77

models

Back 77

representations, schematics, or illustration of relationships

Front 78

neuroeconomics

Back 78

a specialization within economics that takes into account how personal choices, attitudes, and emotions affect consumers selection of products or services

Front 79

prospect theory

Back 79

a system of ideas that states people feel more pain from loss than pleasure from profit, a fact that affect their decision to make a change in their condition

Front 80

public policy

Back 80

a plan or decision by government to act in a certain way or go in a particular direction

Front 81

quality of life

Back 81

a consumers perception of and satisfaction with life

Front 82

rationality

Back 82

the characteristic of having the ability to reason

Front 83

reactance

Back 83

a reaction by a consumer of wanting a product or service even more after hearing a warning or negative message about it

Front 84

regional subcultures

Back 84

groups that have characteristic differences in environment, resource use, history, and traditions based on location

Front 85

socialization

Back 85

the process of learning to interact with others, forming cooperative relationships, participating in society, and learning the ways of daily life

Front 86

standard of living

Back 86

the quality of life at which consumers aspire to live

Front 87

targeted advertising

Back 87

a type of advertising geared to a specific group based on its environment or culture

Front 88

technological obsolescence

Back 88

the process that occurs when a product becomes outdated soon after it was purchased or before it is worn out

Front 89

technology

Back 89

the application of scientific knowledge to useful purposes

Front 90

theory

Back 90

an organized system of ideas or beliefs that can be measured

Front 91

theory of mental accounting

Back 91

a system of ideas that examines the framework of peoples saving and spending behaviors

Front 92

theory of reasoned action

Back 92

a system of ideas that posits that actions are based on a combination of attitudes and beliefs and that motivations are linked to attitudes and beliefs

Front 93

transaction

Back 93

a transfer that leads to completion of the exchange process