consumption

Question 1

what is consumption

Answer 1

the use of resources and purchase of goods & services to satisfy needs and wants

Question 2

what are needs

Answer 2

essentials

Question 3

what are wants

Answer 3

unessential desires (unlimited and relative)

Question 4

what are the 8 factors affecting consumption?

Answer 4

• purchasing power
• age and state
• gender
• values
• social groups
  -adversiting
• opportunity cost
• prices

Question 5

what is purchasing power

Answer 5

the amount of goods and services an income can buy

Question 6

what is disposable income

Answer 6

money that remains after deductions (take home pay)

Question 7

how does credit affect purchasing power

Answer 7

access to credit increases purchasing power

Question 8

how does social groups impact consumption

Answer 8

someone’s surrounding can impact their consumption habits (parents, peers, etc.)

Question 9

what does adversiting strategies create

Answer 9

desires and demand

Question 10

what is opportunity cost

Answer 10

needs & wants are unlimited but resources, goods and income are limited (requires consumer to make a choice) (go on vacation vs work and receive money)

Question 11

what are characteristics of our consumer society (5)

Answer 11

• mass consumption
• low cost mass production
• advertising
• access to credit
• planned obsolescence