5 Consumption Flashcards

1
Q

use of goods and services by consumers to address needs and wants

A

consumption

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2
Q

completely free

A

free goods

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3
Q

goods that you must pay for

A

economic goods

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4
Q

immediate use; readily satisfy wants and needs

A

final goods

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5
Q

used to produce final products

A

intermediate goods

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6
Q

using final goods and services to directly address particular want/need

A

direct

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7
Q

use goods and services to produce final good

A

indirect

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8
Q

natural tendency to satisfy needs to live

A

law of economic order

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9
Q

people are happier when imitating others

A

law of imitation

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10
Q

increased satisfaction if we use variety of products, rather than just one

A

law of variety

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11
Q

people buy products that complement each other for more satisfaction

A

law of harmony

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12
Q

as you consume more and more of a product, we are less satisfied as we reach our saturation point

A

law of diminishing marginal utility

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13
Q

anticipated value; implies increased value at a later date

A

exchange value

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14
Q

during emergency situation; how important it is NOW, rather than later

A

use value

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15
Q

must entertain opportunity cost

A

value/utility

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16
Q

measure of happiness and satisfaction one receives from consuming goods and services; benefit received from consumption

A

utility

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17
Q

overall benefit

A

total utility

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18
Q

additional utility gained from using additional unit of goods and srrvices

A

marginal utility

19
Q

greatest value; objective is to raise total value of a product, with minimum amount of money

A

utility maximization

20
Q

actions should be judged whether or not they are right/wrong to extend that they increase or decrease utility

A

utilitarianism

21
Q

people must weigh the cost and benefits of a decision, and take the decision with the most utility

A

rational choice theory

22
Q

marginal utility decreases as more of the good/service is consumed, and people reach their saturation point

A

law of decreasing marginal utility

23
Q

businesses use this, getting average saturation point and pricing over that

A

utility and the cost of unlimited

24
Q

“most disposable income, more consumption rate” - John Maynard Keynes

A

income as a consumption factor

25
permanent income increases consumption more than a temporary one - "Milton Friedman"
permanent income hypothesis
26
more wealth, more consumption rate
wealth as a consumption factor
27
less wealth, less consumption rate
wealth as a consumption factor
28
higher interest rate discourages people from borrowing money; lower rate encourages consumption
interest rate as a consumption factor
29
lower interest rate discourages people from borrowing money; higher rate encourages consumption
interest rate as a consumption factor
30
you buy things for the particular season (winter, wet, christmas, summer, etc)
season as a consumption factor
31
convinces you to start and continue using a product
advertising as a consumption factor
32
all products/services must be safe
consumers' right to safety
33
educated to be a good consumer
consumers' right to consumer education
34
compensated when something bad happens to you/given faulty product
consumers' right to redress
35
government must ensure that basic needs are affordable and accessible
consumers' right to basic needs
36
choose products and services to avail, unless it's illegal; gov't encourages competition for variety
consumers' right to choose
37
represented by diff gov't agencies
consumers' right to representation
38
important information displayed on product/good
consumers' right to information
39
products encourage healthy environment
consumers' right to healthy environment
40
read all available info; practice your due diligence
critical awareness
41
take action; sue, return a faulty product, etc
alertness and action
42
help other consumers by being honest with reviews; give them warning if the product is faulty or low quality
solidarity
43
know what effects goods and products have on the environment
social and environmental concern
44
supports actions that support happiness, denounces those that cause sadness
utilitarianism