exam 1 - Exam 1 study guide CHAPTER 1 SUMMARY Varying views...

Exam 1, study guide 26/09/2007 15:10:00
← CHAPTER 1
SUMMARY
•
Varying views as to whether consumers…
o
Know what they want
o
Can determine quality
o
Can determine safety
o
Can verify quantity
o
Can detect fraud
o
Readily understand pricing practices
o
Have access to all the info they need to make wise decisions in the
marketplace
• JFK developed 4 rights of consumers
o
Safety
o
Information
o
Choice
o
To be heard
VOCAB
• household
o
one or more people who occupy a housing unit
• money
o
something generally accepted as a medium of exchange, a measure of
value, or a means of payment
•
savings
o
income not spent
• consumer sovereignty
o
“the consumer as ruler”
o
meeting the consumers’ needs is the only important function of an
economy

• competition
o
rivalry in buying and selling
•
collective consumption
o
expenditures for public needs
 education, highways, police
• oligopoly
o
few sellers control the majority of the supply of a product or service
•
monopolistic competition
o