Chapter 28-Our Free Enterprise System Flashcards
When a consumer gets action desired to resolve a problem with a product or service
Redress
The willingness and ability of consumers to purchase a product
Demand
Advertising an item at special savings that is in reality selling at regular price
Fake sale
Reducing prices and qualities to the lowest unit possible to compare values
Unit pricing
Vulnerable people are often subject to the schemes of con artists who convince them to invest their money in phony deals
True
Manufacturers or makers of goods and services for sale
Producers
When producers get together to set prices and do not engage in competition
Price-fixing
Buyers and users of goods and services
Consumers
The quantity of goods and services being produced
Supply
Advertising repairs at low prices, then urging more repairs
Low-balling
Occurs when more than one producer or supplier of a good or service exists, each trying to sell its product
Competition
Buying on the spur of the moment
Impulse buyer
The basic economic problem of unlimited consumer wants but limited resources to satisfy those wants
Scarcity
Everyone is a producer and consumer in the market economy
False
Demand is the quantity of goods and services available for sale
False
Whenever consumers purchase a product, they are casting a dollar vote for that product
True
It is necessary to have competition, purchasing power, and informed customers in a free enterprise system
True
Satisfaction or reward received by consumers who by products
Utility
The government shifts purchasing power among citizens by making transfer payments
True
Government grants to some citizens paid with money collected from other citizens
Transfer payments
Infomercials are advertisements involving product demonstrations and testimonials
True
Consumer sovereignty is the power of consumers to determine what is produced and sold
True
What are warning signals for a deceptive practice
Very low prices, something for nothing, and must decide today
When seeking better redress
Contact the seller first
What are types of transfer payments
Social security, welfare, and veterans’ benefits
Transfer payments are … income because they are not obtained by working for them
Unearned
Having money with which to buy goods and services
Purchasing power
Schemes by which managers can make large profits by getting other workers to sell products to their friends
Pyramid scheme
A fraudulent practice in which vulnerable people are convinced that they are investing in a legitimate enterprise
Pigeon drop
Everyone is a
Consumer
Who has the final say in what is produced and at what cost
Consumer
An economy were both consumers and producers play important roles
Market
A fantastic price offer on an item that is out of stock; customers are urged to buy another item at a higher price
Bait and switch advertisement
