Chapter Seven Flashcards
Define Consumerism
an economic theory that says the more people who buy, the better it is for the economy; consumer behavior is central to economic decision making
Who are consumers?
Any person who buys goods or services
What are the 5 factors of consumerism?
Identity, Health and safety, Jobs, The environment, Marketing
True or False: the government can make legislation about what consumers are allowed to buy
True
What are some reasons why government might put laws in place restricting what consumers can buy?
For their health and safety; they may require companies to have certain safety measures on their products; they require citizens to wear seatbelts in cars
Is Canada the ONLY country that puts laws in place for consumers?
No, the US is another example of a country that does this. Other countries do as well.
How does consumer spending affect jobs?
When you buy a product, you are supporting a company and their workers
How does consumer spending affect the environment?
Answers may vary: can create a lot of waste (amazon packaging), can benefit the environment depending on the products consumers buy
What is marketing?
Ways that companies advertise or convince consumers to buy products. For example, TV commercials
What is “Bandwagon Effect” or “Bandwagon Advertising”?
Encourages you to buy a product or service because everyone else is
Define GDP
Gross Domestic Product: The amount of wealth a country accumulates
Define Per Capita
“Per Person” GDP per capita means the average amount of wealth per person
Define Boycott
a decision by a group of consumers NOT to buy certain products
How do boycotts affect consumerism?
If a consumer chooses not to purchase a product or support a business, that product/business will suffer. As a result, the product/business will be forced to change their ways or they will go bankrupt
True or False: we ONLY see consumer spending in Market Economies
False: consumer spending is important in mixed economies as well
