lesson 5

Question 1

the one who demands goods and services

Answer 1

consumer

Question 2

king of producers

Answer 2

consumers

Question 3

goods that yield satisfaction directly to any consumer and are sold for consumption and not to be used for further processing of another good

Answer 3

consumer goods

Question 4

basic needs for sustaining human life

Answer 4

physiological needs

Question 5

needs to achieve safety feeling. it can be in the form of house, money, or security

Answer 5

safety needs

Question 6

need for belongingness, love, care, and acceptance

Answer 6

social needs

Question 7

need for recognition. sometimes we satisfy it by having control or power with the things we are good at

Answer 7

esteem needs

Question 8

need for growth or improvement. it answers the questions of what we are capable of becoming

Answer 8

self-actualization needs

Question 9

3 steps in studying consumer behavior

Answer 9

consumer preferences
budget constraints
consumer choices

Question 10

describe how and why people prefer one good to another

Answer 10

consumer preferences

Question 11

this means that people have limited income

Answer 11

budget constraints

Question 12

combination of consumer preferences and budget constraints. it answers the question of what combination of goods or services will consumers buy to achieve their satisfaction while at the same time maximizing their limited budget

Answer 12

consumer choices

Question 13

refers to the satisfaction or pleasure that an individual/consumer gets from consuming a good/service. consumers’ willingness to pay for goods or services, whatever its price

Answer 13

utility theory

Question 14

defined as the additional satisfaction that an individual derives from consuming an extra unit of goods/services

Answer 14

marginal utility

Question 15

total satisfaction that a consumer derives from the consumption of goods/services

Answer 15

total utility

Question 16

as the consumer gets more satisfaction in the long run, he experiences a decline in satisfaction. As more and more units of products/goods are consumed, every additional unit gives satisfaction with a
diminishing rate.

Answer 16

law of diminishing marginal utility

Question 17

showing no bias/neutra. to explain it more, different combinations of goods and services give the same level of satisfaction to the consumer

Answer 17

indifference curve

Question 18

consumption possibility line. indicates the various combinations of two products which can be purchased by the consumer with his income, given the prices of the products

Answer 18

budget line