Consumer Choices Using Demand

Question 1

Resources:

Answer 1

personal endowments we have (Family, Income, Time, Skills). F.I.T.S.

Question 2

Means:

Answer 2

personal resources.

Question 3

Family:

Answer 3

parents, grandparents, brothers and sisters, and extended family.

Question 4

Time:

Answer 4

hours, days available.

Question 5

Skills:

Answer 5

abilities, qualifications.

Question 6

Income:

Answer 6

money earned before tax

Question 7

Wants:

Answer 7

desires. Goods and services that we would like to have but are not essential for life.

Question 8

Needs:

Answer 8

essentials for living.

Question 9

Values:

Answer 9

strongly held beliefs. E.g. Family, friends, healthy eating, environmental care.

Question 10

Economic decision:

Answer 10

a choice between alternatives.

Question 11

Scarcity:

Answer 11

resources are limited relative to our wants.

Question 12

Opportunity Cost:

Answer 12

second best alternative foregone when a decision is made.

Question 13

Individual Demand:

Answer 13

The quantity of a good that a consumer is willing and able to purchase, at a range of prices, in a given time period.

Question 14

Willing:

Answer 14

Have the desire.

Question 15

Able:

Answer 15

Have the income.

Question 16

Demand schedule:

Answer 16

Table showing quantity demanded at a range of different prices.

Question 17

Ceteris paribus:

Answer 17

Everything stays constant apart from the price.

Question 18

Consumer:

Answer 18

A person who purchases goods or services.

Question 19

Demand Curve:

Answer 19

A curve showing quantity demanded at a range of prices.

Question 20

Quantity demanded:

Answer 20

Is the amount a consumer will purchase at one price. One point on the demand curve.

Question 21

Demand:

Answer 21

Is the amount a consumer is willing and able to purchase at a range of prices. The entire demand curve.

Question 22

T.O.A.D.S:

Answer 22

(Title, Origin, Axes, D Label, and Scale)

Question 23

Law of Demand:

Answer 23

As the price decreases, the quantity demanded increases and as the price increases, the quantity demanded falls, assuming Ceteris paribus.

Question 24

Movement along the demand curve:

Answer 24

change in price/quantity demanded.

Question 25

Relatively more affordable:

Answer 25

cheaper than it was.

Question 26

Flow-on effect:

Answer 26

impact of the change in the price.

Question 27

Non-price factors:

Answer 27

changes in tastes/fashion/preferences or income/disposable income or price of complements or price of substitutes (T.I.C.S).

Question 28

Disposable income:

Answer 28

income after tax and transfers.

Question 29

Complements:

Answer 29

goods used together.

Question 30

Substitutes:

Answer 30

goods used in place of each other.

Question 31

Transfers:

Answer 31

government benefits to households.

Question 32

Taste fashion preferences:

Answer 32

consumer desire for a good.