Chapter 7

Question 1

What is consumerism?

Answer 1

Consumerism is an economic theory that says the more people buy, the better it is for the economy.

Question 2

What are the factors of consumerism?

Answer 2

• Identity
• Health and safety
• Jobs
• Environment
• Marketing

Question 3

How does Identity affect consumerism?

Answer 3

The items we buy reflect what we value and believe in/

Question 4

How do Health and Safety affect consumerism?

Answer 4

Laws require warnings on products such as cigarettes, as well as warnings as to what smoking can lead to.

Question 5

What type of laws does Canada and USA have about product labeling?

Answer 5

require producers to list the ingredients in food and cosmetics.

Question 6

How do jobs affect consumerism?

Answer 6

When you buy a product, you connect to a chain of people and their jobs. Your choice is part of what keeps them employed

Question 7

What are the indicators that an economy is shrinking?

Answer 7

If profits fall, or fewer people have jobs, this indicates that an economy is shrinking rather than growing.

Question 8

How do governments encourage consumer spending?

Answer 8

Through tax breaks and other measures

Question 9

Why would a government encourage consumer spending?

Answer 9

They sometimes encourage consumer spending to keep their economies growing.

Question 10

How does environment affect consumerism?

Answer 10

Your choices as a consumer also affect the air, water, and land that you share with everybody.

Question 11

How much does packaging make of waste?

Answer 11

Packaging makes up one-third of the waste North American consumers generate.

Question 12

What amount of plastic produced is used as packaging?

Answer 12

Packaging accounts for about one-quarter of all plastic produced in the U.S.

Question 13

What legislations has the government made about consumerism and the environment?

Answer 13

• banned leaded gasoline, because of the harmful effects of lead on human health
• Consumers shopping for new appliances can identify energy-efficient options

Question 14

What legislation has the government made in marketing?

Answer 14

Advertising can’t make false or misleading claims about products and services

Question 15

What is the competition act?

Answer 15

The Competition Act aims to uphold competition among producers by ensuring fair business practices.

Question 16

How does marketing affect consumerism?

Answer 16

The products that are marketed to you on billboards or commercials ensure that you are more tempted to buy a product.

Question 17

What are the advertising techniques?

Answer 17

Bandwagon Effect
Emotional Appeal
Glittering Generalities
Plain Folks Appeal
Testimonials

Question 18

What is the bandwagon effect?

Answer 18

• Encourages you to buy a product or service because everyone else is.

Question 19

What is emotional appeal?

Answer 19

• Uses strong emotional language that connects with your fears and desires.

Question 20

What is glittering generalities?

Answer 20

• Relates the product or service to words or images that promise everything, but deliver little or nothing.

Question 21

What is plain folks appeal?

Answer 21

• Relates a product or service to the experience of ordinary folks.

Question 22

What is are testimonials?

Answer 22

• Uses celebrities or experts to speak for a product.

Question 23

What is scientific appeal?

Answer 23

• Uses statistics or scientific data to persuade consumers to buy a product or service

Question 24

What does boycott mean?

Answer 24

A decision by consumers to stop buying a product or service as a way to bring about change

Question 25

What does GDP mean?

Answer 25

GDP measures the amount of wealth a country’s economy generates.