chapter 8 vocab Flashcards
the idea that consumers’ needs and wants determine the shape of all economic activities
consumer sovereignty
a line showing the possible combinations of two goods that a consumer can purchase
budget line
the pleasure or satisfaction received from goods, services, or experiences
utility
a curve showing the relation of utility levels to consumption levels
utility function (or total utility curve)
the change in a consumer’s utility when consumption of something changes by one unit
marginal utility
the tendency for additional units of consumption to add less to utility than did previous units of consumption
diminishing marginal utility
a society in which a large part of people’s sense of identity and meaning is found through the purchase and use of consumer goods and services
consumer society
having one’s sense of identity and meaning defined largely through the purchase and use of consumer goods and services
consumerism
the group to which an individual compares himself or herself
reference group
the group to which an individual aspires to belong
aspirational group
the feeling of lack that comes from comparing oneself with someone who has more
relative deprivation
an estimate of how much land area a human society requires to provide all that the society takes from nature and to absorb its waste and pollution
ecological footprint
making consumption decisions at least partly on the basis of environmental criteria
green consumerism
product labels that provide information about environmental impacts, or indicate certification
ecolabeling
a measure of welfare based on survey questions asking people about their own degree of life satisfaction
subjective well-being (SWB)
