Lesson 5&6: CONSUMER BEHAVIOR&Economic growth

Question 1

• It is the branch of economics that concerns itself with
  market systems that operate on a large scale.

is the study
of the economy as a whole.

Answer 1

Macroeconomics

Question 2

is the period of steady growth in output, along with an
improvement in living standards.

Answer 2

Economic Growth

Question 3

is the period of steady growth in output, along with an
improvement in living standards.

Answer 3

Economic Growth

Question 4

is the market value of all final goods and services produce within
a nation in a given time

Answer 4

GDP (Gross
Domestic Product)

Question 5

two types of GDP.

Answer 5

Nominal GDP and Real GDP

Question 6

where the measure of output is based on current prices,

Answer 6

Nominal
GDP

Question 7

, where the measure of output is based on changes in inflation.

Answer 7

Real GDP

Question 8

– is the one who demand goods and
services.

Answer 8

Consumer

Question 9

– is the one who demand goods and
services.

Answer 9

Consumer

Question 10

3 Steps involved in studying
Consumer Behavior

Answer 10

Consumer Preferences
Budget Constraints
Consumer Choices

Question 11

– describe how
and why people prefer one good to another.

Answer 11

Consumer Preferences

Question 12

– this means that
people have limited income.

Answer 12

Budget Constraints

Question 13

– combination of
consumer preferences and budget
constraints.

Answer 13

Consumer Choices

Question 14

Economics of Satisfaction

Answer 14

Utility Theory
Indifference Curve
Budget Line

Question 15

– refers to the satisfaction
or pleasure that an individual/consumer gets
from consuming a good/service.

Answer 15

Utility Theory

Question 16

– defined as the additional
satisfaction

Answer 16

Marginal Utility

Question 17

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

Answer 17

Total Utility

Question 18

– as the
consumer gets more satisfaction in the long run,
he/she experiences a decline in satisfaction.

Answer 18

Law of Diminishing Marginal Utility

Question 19

– showing no bias or
being neutral.

Answer 19

Indifference Curve

Question 20

– or consumption possibility
line, indicated the various combination of two
products, which can be purchased by the consumer with his income, given the priced of
the products.

Answer 20

Budget Line

Question 21

Maslow’s
Hierarchy of Need

Answer 21

Physiological
Safety
Social
Esteem
Self-Actualization

Question 22

Maslow’s
Hierarchy of Need

Answer 22

Physiological
Safety
Social
Esteem
Self-Actualization

Question 23

– these are the basic needs for sustaining human life.

Answer 23

Physiological needs

Question 24

– these are the needs to achieve safety feeling. It can be in the
form of house, money, or security.

Answer 24

Safety needs

Question 25

– these are the needs to achieve safety feeling. It can be in the
form of house, money, or security.

Answer 25

Safety needs

Question 26

– this is the need for belongingness, love, care, and
acceptance.

Answer 26

Social needs

Question 27

– this is the need for growth or improvement. It
answers the questions of what we are capable of becoming.

Answer 27

Self-actualization needs

Question 28

– GDP is based on households, businesses, and the
government in a given period.

Answer 28

Expenditure Approach

Question 29

– GDP is based on the earnings of the households,
businesses, and the government in a given period.

Answer 29

Income Approach

Question 30

– GDP is based on the earnings of the households,
businesses, and the government in a given period.

Answer 30

Income Approach

Question 31

– GDP is the sum of the amount of final goods and
services produced and multiplied by their respective prices in a given period.

Answer 31

Flow of product approach

Question 32

– GDP is the sum of the amount of final goods and
services produced and multiplied by their respective prices in a given period.

Answer 32

Flow of product approach

Question 33

– GDP is the sum of the output of
the economy’s major industries for a given period.

Answer 33

Gross Value Added (GVA) Approach

Question 34

– the market value of all final goods and services
produced by nationals of a country for a given period.

Answer 34

GNP (Gross National Product)

Question 35

– total income received by the most basic factors of
production of a country

Answer 35

NI (National Income)

Question 36

– total income received by the most basic factors of
production of a country

Answer 36

NI (National Income)

Question 37

income received by an individual net of taxes.
Take- home pay. This is the available money to be spent or saved as one wishes.

Answer 37

DI (Disposable Income)