WEEK 5: CONSUMER ECONOMICS

Question 1

The belief that satisfaction of
consumers’ needs and wants is the ultimate economic goal and that the economy is fundamentally ruled by
consumer desires.

Answer 1

Consumer Sovereignty

Question 2

Is the study of how people deal
with scarcity, fulfill needs, and select among alternative goods, services, and actions.

Answer 2

Consumer Economics

Question 3

Use goods and services

Answer 3

Consumers

Question 4

Buy goods and services

Answer 4

Customers

Question 5

T or F: we are all consumers and customers at different part of our lives

Answer 5

TRUE

Question 6

Economic Roles

Answer 6

1. Worker
2. Consumer
3. Citizen

Question 7

Economic Roles: WORKER

Answer 7

• Earn money to help stimulate the economy.
• Produce goods and services for consumers.
• Pay income taxes to government, they use to fund different programs.

Question 8

Economic Roles: CONSUMER

Answer 8

• Use goods and services.
• Provide purpose for business production.

Question 9

Economic Roles: CITIZEN

Answer 9

• A legal resident of a country
• Right to vote
• Must pay taxes
• Use public services

Question 10

How the Economy Works

Answer 10

1. Individuals/Society
2. Government
3. Business

Question 11

provide labor, skills,
capital

Answer 11

Individuals/Society

Question 12

Provides public services and payments.

Answer 12

Government

Question 13

Pays employees’ wages

Answer 13

Business

Question 14

An economic system in which the production of goods and services
are directed by the laws of supply and demand.

Answer 14

Market Economy

Question 15

Involves the flow of goods and services from business firms to consumers, the composition of the
flow, and the evaluation or pricing of the component parts of the flow.

Answer 15

Price Theory

Question 16

Consumers act to divide their limited resources among products and services that could meet their satisfaction.

Answer 16

Consumer Demand Theory

Question 17

Determinant of Demand

Answer 17

• Price of the Good
• Income of the consumer
• Price of related goods
• Taste and preferences of the consumer.
• Other factors like distribution of income, population growth, etc.

Question 18

Degree of pleasure or
satisfaction

Answer 18

Utility

Question 19

Limitations of the CDT

Answer 19

• It assumes that people are rational
  (always?)
• It assumes that all benefits from consumption can be identified, compared, and added up in reality,
  so complicated if faced with too many options.

Question 20

The Paradox of Choice: Why more is less?

Answer 20

“choice no longer liberates, but debilitates. It might even be said to
tyrannies”

Question 21

Redefinition of needs and aspirations

Answer 21

Feature of Consumerism

Question 22

An economic and social system that encourages the consumption
of goods and services as a means of attaining wellbeing.

Answer 22

Consumerism

Question 23

Refers to a state in which
consumers demand products and services that have undergone an
eco-friendly production process or one that involves recycling and
safeguarding the planet’s
resources.

Answer 23

Green Consumerism

Question 24

Linear Economy

Answer 24

Take – Make – Dispose

Question 25

Circular Economy

Answer 25

Make – Use – Recycle

Question 26

An economic model that highlights business opportunities where
cycles rather than linear processes, dominate.

Answer 26

Circular Economy

Question 27

is about decoupling economic growth from the use of finite resources.

Answer 27

Circular economy (Circular Economy and
a New Model of Growth)

Question 28

An economic model designed to minimize resource input, as well as
waste and emission production.

Answer 28

Circular Economy

Question 29

Principles of Circular Economy

Answer 29

1. Minimization of waste and pollution
2. Extension of the useful life of products and materials
3. Regeneration of natural systems

Question 30

Management of finite resources

Answer 30

Technological Cycles

Question 31

Management of Renewable Resources

Answer 31

Biological Cycles