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Quiz 2 Material
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1.
bad economy
decreasing amounts of producing and
consuming year after year
2.
bandwagon
the advertiser tries to make you feel like
everyone else has a product and if you don't
have it too, you'll be left out
3.
4.
capital
command
cash, tools, equipment, machinery,
technology for production
powerful government officials make economic
decisions
individual citizen is to defer to leaders on
most economic matters
5.
competition
more producers enter the market- affects
supplyq
6.
competition
work at getting the scarce goods
7.
complements
products purchased together
consumer
preferences
tastes change
consumer
security
if you feel good or anxious about the future- it
will affect how you spend money
Demand
as the price of a good or service that
consumers are willing and able to buy during
a certain time period rises (or falls) the
quantity of that good or service demanded
falls (or rises)
8.
9.
10.
elasticity
if a product changes its price, we expect
there will be a change in quantity
demanded- the degree of change is this
elasticity of
supply
changes in price offered by market will
affect the amount of goods produced by
businesses
emotional
approach
the advertiser appeals to people's fears,
joys, sense of nostalgia, etc
25.
entrepreneur
someone to put it all together, takes the
risk- most important factor of production
26.
equilibrium
at this price every buyer finds a seller and
every seller finds a buyer
27.
equilibrium
price at which the quantity demanded by
buyers equals the quantity supplied by
sellers
example of price
ceiling
government controlled gas prices, rent
control, pay to play
example of price
floor
minimum wage
30.
facts and figures
using statistics, research, or other data to
make the product appear to be better than
its competitors
31.
flattery
the advertiser appeals to the audience's
vanity by implying that
smart/rich/popular people buy the
product
Four factors of
production
Labor, Natural Resources, Capital,
Entrepreneur
glittering
generality
using words that are positive and
appealing, but too vague to have any real
meaning, like "pure and natural"
22.
23.
24.
28.
29.
demand
has to do with consumers and buyers
demand
curve
slopes downward- called "downward sloping"
determinants
of demand
consumer preference, market size, income,
price of related goods, consumer security
determinants
of supply
technological improvement, resource prices,
taxes and subsidies, competition
34.
good economy
determinants
of supply and
demand
factors that change the quantity demanded or
supplied
more producing and consuming which
increases every year
35.
goods
material items
diminishing
marginal
utility
with each use of a good or service, the degree
of satisfaction gained from the good or service
will gradually lessen
36.
income
as the average income goes up or down,
sales for products will also change
37.
inelastic
economic
system
organized set of procedures and practices that
a society follows in the production and
distribution of goods and services
if price changes and the quanity
demanded does not change
38.
inelastic supply
if quantity cannot change easily
Economy
system of producing and consuming
inferior
products
products one buys less of when income
rises
economy in a
slump
higher rates of crime, poverty, less
government revenue
40.
Labor
Human physical and mental talent to the
production process
20.
elastic
if price changes only a little, and quantity
demanded changes a lot
41.
loaded words
21.
elastic supply
if quantity can change easily
words with strong associations such as
"home" "family" "dishonest" and
"wasteful"
42.
macroeconomics
national or global scale decisions
11.
12.
13.
14.
15.
16.
17.
18.
19.
32.
33.
39.
43.
44.
main symptom
of a bad
economy
high rate of unemployment
market
individual own and control resources,
government has some control through
taxation and regulation
45.
market size
the amount of people to buy the product
may change
46.
microeconomics
decisions made by individuals and
businesses
64.
subsidies
monetary grant to a business to help ease
production or develop a new product
65.
substitutes
products that can easily be replaced with
others
66.
Supply
as the price of a good or service that
producers are willing and able to offer for
sale during a certain period of time rises (or
falls) the quantity of that good or service
rises (or falls)
67.
supply
has to do with businesses and producers
68.
supply curve
slopes upward to the right- called "upward
sloping"
69.
surplus
price of a product is above the market
equilibrium price
70.
surplus
quantity supplied of a product exceeds the
quantity demanded
taxes
adds to production costs- make supply go
down
technological
improvement
can increase productivity if new
advancements are made to make production
smoother and quicker
testimonial
a product is endorsed by a celebrity or by an
expert
Three types of
economic
systems
traditional, command, market
75.
trade offs
losses and benefits of your decision
76.
traditional
customs, religion, skills pass from parent to
child
Africa, Latin America, Middle East areas
77.
transference
attempts to make the audience associate
positive words, images, and ideas with a
product and its users
78.
urgency
the advertiser makes you feel like you need
the product right away
79.
utility
satisfaction and use people get from a good
or service
80.
utility
will determine the elasticity of the product
81.
wants
not vital to life, but we desire them
what is the
relationship
between
producers and
consumers
prices will rise or fall based on the supply or
demand for goods and services
what is the
relationship
between
producers and
consumers?
prices are used in the market to help
producers and consumers communicate
with each other
name calling
comparing one product to another and
saying it is weaker or inferior in quality or
taste
Natural
resources
items provided by mother nature- coal, oil,
trees, water
49.
needs
necessary to our survival
50.
opportunity cost
cost of what you sacrifice
71.
51.
plain folks
the advertiser says or implies that people
just like you use a product (this often takes
the form of a testimonial)
72.
47.
48.
52.
price ceiling
maximum price that something can have
53.
price floor
minimum price that something can have
54.
repetition
a product's name or catchphrase is
repeated over and over, with the goal of
having it stick in the viewer or listener's
mind
55.
resource prices
if prices of what goes into the product go
up or down, it will affect the supply
brought to the table to sell
56.
57.
58.
59.
scarcity
scarcity
scarcity
services
resources are limited to satisfy all desires
and wants of the people
basic economic problem that arises
because people have unlimited wants but
resources are limited
various economic decisions must be made
to allocate resources efficiently
actions or activities that are done for
others
60.
shortage
quantity demanded for a product exceeds
the quantity supplied
61.
shortage
price of a product is below the market
equilibrium price
62.
snob appeal
the opposite of bandwagon technique,
snob appeal makes the case that using the
product means the consumer is
better/smarter/richer than everyone else
63.
special offer
the advertiser offers a discount, coupon,
free gift, or other enticement to get people
to buy a product
73.
74.
82.
83.