Economics Test #2

Question 1

Consumer

Answer 1

any person or group that buts or uses goods and services

Question 2

Rational Choice

Answer 2

consumer decisions based on opportunity cost

Question 3

Consumerism

Answer 3

movement to educate buyers about their purchases

Question 4

Discretionary Income

Answer 4

money left over to spend on extras after purchasing necessities

Question 5

Disposable Income

Answer 5

money remaining after paying all taxes

Question 6

Bait and Catch

Answer 6

misleading advertising practice

Question 7

Informative Advertising

Answer 7

advertising that benefits consumers

Question 8

Comparison Shopping

Answer 8

getting information on types and prices of available products

Question 9

Generic Brand

Answer 9

general name for a product

Question 10

Warranty

Answer 10

promise made by manufacturer or seller to replace a faulty product

Question 11

Brand Name

Answer 11

word or picture or slogan that helps consumers distinguish it from similar products

Question 12

Ethical Behavior

Answer 12

in accordance with moral and ethical convictions about right and wrong

Question 13

Time

Answer 13

must obtain info usually in the form of prices about the product you wish to purchase

Question 14

Opportunity Cost

Answer 14

the value of the highest alternative choice you did not make

Question 15

Buying Principles and Strategies

Answer 15

gather information, using advertising wisely, comparison shopping