5 Consumption

Question 1

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

Answer 1

consumption

Question 2

completely free

Answer 2

free goods

Question 3

goods that you must pay for

Answer 3

economic goods

Question 4

immediate use; readily satisfy wants and needs

Answer 4

final goods

Question 5

used to produce final products

Answer 5

intermediate goods

Question 6

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

Answer 6

direct

Question 7

use goods and services to produce final good

Answer 7

indirect

Question 8

natural tendency to satisfy needs to live

Answer 8

law of economic order

Question 9

people are happier when imitating others

Answer 9

law of imitation

Question 10

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

Answer 10

law of variety

Question 11

people buy products that complement each other for more satisfaction

Answer 11

law of harmony

Question 12

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

Answer 12

law of diminishing marginal utility

Question 13

anticipated value; implies increased value at a later date

Answer 13

exchange value

Question 14

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

Answer 14

use value

Question 15

must entertain opportunity cost

Answer 15

value/utility

Question 16

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

Answer 16

utility

Question 17

overall benefit

Answer 17

total utility

Question 18

additional utility gained from using additional unit of goods and srrvices

Answer 18

marginal utility

Question 19

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

Answer 19

utility maximization

Question 20

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

Answer 20

utilitarianism

Question 21

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

Answer 21

rational choice theory

Question 22

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

Answer 22

law of decreasing marginal utility

Question 23

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

Answer 23

utility and the cost of unlimited

Question 24

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

Answer 24

income as a consumption factor

Question 25

permanent income increases consumption more than a temporary one - “Milton Friedman”

Answer 25

permanent income hypothesis

Question 26

more wealth, more consumption rate

Answer 26

wealth as a consumption factor

Question 27

less wealth, less consumption rate

Answer 27

wealth as a consumption factor

Question 28

higher interest rate discourages people from borrowing money; lower rate encourages consumption

Answer 28

interest rate as a consumption factor

Question 29

lower interest rate discourages people from borrowing money; higher rate encourages consumption

Answer 29

interest rate as a consumption factor

Question 30

you buy things for the particular season (winter, wet, christmas, summer, etc)

Answer 30

season as a consumption factor

Question 31

convinces you to start and continue using a product

Answer 31

advertising as a consumption factor

Question 32

all products/services must be safe

Answer 32

consumers’ right to safety

Question 33

educated to be a good consumer

Answer 33

consumers’ right to consumer education

Question 34

compensated when something bad happens to you/given faulty product

Answer 34

consumers’ right to redress

Question 35

government must ensure that basic needs are affordable and accessible

Answer 35

consumers’ right to basic needs

Question 36

choose products and services to avail, unless it’s illegal; gov’t encourages competition for variety

Answer 36

consumers’ right to choose

Question 37

represented by diff gov’t agencies

Answer 37

consumers’ right to representation

Question 38

important information displayed on product/good

Answer 38

consumers’ right to information

Question 39

products encourage healthy environment

Answer 39

consumers’ right to healthy environment

Question 40

read all available info; practice your due diligence

Answer 40

critical awareness

Question 41

take action; sue, return a faulty product, etc

Answer 41

alertness and action

Question 42

help other consumers by being honest with reviews; give them warning if the product is faulty or low quality

Answer 42

solidarity

Question 43

know what effects goods and products have on the environment

Answer 43

social and environmental concern

Question 44

supports actions that support happiness, denounces those that cause sadness

Answer 44

utilitarianism