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;
45 Cards in this Set
- Front
- Back
|
The Market price is the price at which there is no shortage or excess of a product or service
|
T
|
|
|
Price elasticity of demand is a measure of consumer responsiveness to a change in price
|
T
|
|
|
A demand curve slopes upward and to the right
|
F
|
|
|
A decrease in overall demand for a given product leads to a shift of the entire curve to the right
|
F
|
|
|
As the price rises, so does the quality of the product
|
T
|
|
|
Consumers frequently view warranties uncritically, assuming that warranties are an indication of quality product.
|
T
|
|
|
A lease is a contract granting use of property during a specified period of time in exchange for a specified rent
|
T
|
|
|
At the end of the car lease, the consumer automatically takes possession of the automobile as owner
|
F
|
|
|
The process of negotiation is best done when the consumer know the manufacturer's suggested retail price
|
F
|
|
|
Service contract is an agreement to make repairs on defective products, separate from the basis of a bargain for the sale of products. It is popular among dealers since profit margins are fantastic
|
T
|
|
|
To harm from a public bad is known as a positive externally
|
F
|
|
|
A pro-environmental consumer is one who takes into consideration the environmental impact of his or her decisions in the marketplace
|
T
|
|
|
Online advertising is now heavily regulated by the FCC
|
F
|
|
|
A public good is any product or service for which persons outside a private marketplace transaction benefit from the transaction
|
T
|
|
|
An attempt to provide guidelines to shoppers indication how environmentally friendly a product might be is called green labeling
|
T
|
|
|
Subjective expected utility theory submits that a consumer's decision to engage in a specific behavior is dependent on the marginal rewards and costs that are expected from the behavior
|
T
|
|
|
Consumer dissatisfaction can occur when the number of products increases, increasing the likelihood of unsuccessful transactions
|
T
|
|
|
The discount rate is a measure of the value of a dollar today compared to one received some time in the future
|
T
|
|
|
The snob effect is the purchase of good or service because others are purchasing it
|
F
|
|
|
Due to the benefits of globalization, consumers everywhere are big winners because they get greater choices at lower prices
|
T
|
|
|
Due to the benefits of globalization, consumers everywhere are big winners because they get greater choices and lower prices
|
T
|
|
|
Third world countries are often called developed countries
|
F
|
|
|
A budget line shows what a consumer is able to purchase
|
T
|
|
|
The two decision making components are budget constraints and indifference curves
|
T
|
|
|
The optimal/ satifactual maximizing purchase is where the ability to trade is equal to the willingness to trade
|
T
|
|
|
Price fixing is legal
|
F
|
|
|
Farm prices are always set by supply and demand
|
F
|
|
|
A consumer's marginal utility will increase as he/ she acquires additional units of specific product
|
F
|
|
|
Social investments are expendatures in work skills and education, infrastructure and research development
|
T
|
|
|
Demand is elastic if a given percentage change in price is accompanied by a relatively smaller change in the quantity demanded
|
F
|
|
|
Interest rate is the price you pay because you use somebody's money
|
T
|
|
|
Competition ensures the availability of products and services at low costs and it helps small businesses enter and thrive in the marketplace
|
T
|
|
|
A regressive ax demands a higher percentage of income increases
|
F
|
|
|
High discount rates generally result in fewer loans to consumers and businesses
|
T
|
|
|
A basic economic problem facing all societies is a crime
|
F
|
|
|
The market system adds up to collective decisions made by millions of buyers and sellers and converts them into aggregate supply and demand
|
T
|
|
|
Capitalism is harsh on vulnerable consumers and inefficient workers
|
T
|
|
|
Four factors of production are land, labor (human capitol-knowledge, skills, abilities, capitol (any form of material wealth) and health
|
F
|
|
|
In the US economic system, economic freedom refers to the right of business to pursue profits without unnecessary regulation
|
T
|
|
|
Socialism is the economic system characterized by open competition in a free market
|
F
|
|
|
The market price is the price at which there is no shortage or excess of a product or service
|
T
|
|
|
Price elasticity of demand is a measure of consumer responsiveness to a change in price
|
T
|
|
|
A demand curve slopes upward and to the right
|
F
|
|
|
A decrease in overall demand for a given product leads to a shift of the entire demand curve to the right
|
F
|
|
|
As price rises, so does the quantity supplied; as the price falls, so does the quantity supplied
|
T
|
