Economics Chapter 3

  1. consumer
    any person or group that buys or uses goods and services to satisfy personal needs and wants
  2. disposable income
    income remaining for a person to spend or save after all taxes have been paid
  3. discretionary income
    money income a person has left to spend on extras after necessities have been bought
  4. rational choice
    choosing the alternative that has the greatest value from among comparable-quality products
  5. competitive advertising
    advertising that attempts to persuade consumers that a product is different and superior to any other
  6. informative advertising
    advertising that benefits consumers by giving information about a product
  7. bait and switch
    ad that attracts consumers with a low-priced product, then tires to sell them a higher-priced product
  8. comparison shopping
    getting information on the types and prices of products available from different stores and companies
  9. warranty
    promise made by a manufacturer or a seller to repair or replace a product within a certain time period if it is found to be faulty
  10. brand name
    word, picture, ore logo on a product that helps consumers distinguish it from similar products
  11. generic brand
    general name for a product rather than a specific brand name given by the manufacturer
  12. consumerism
    movement to educate buyers about the purchase they make and to demand better and safer products from manufacturers
  13. ethical behavior
    acting in accordance with moral and ethical convictions about right and wrong
Card Set
Economics Chapter 3
Terms for my high school economics class, chapter three