Chapter 3 vocab words

  1. Inflation
  2. is an increase in the general level of prices for goods and services.
  3. Disinflation
    occurs when prices are rising, but at a slow rate.
  4. Reflation
  5. occurs when prices are high but then drop due to lower demand.
  6. Hyperinflation
  7. when prices are rising so rapidly they are out of control.
  8. Deflation
  9. is the lowering of overall price levels.
  10. Deman-pull inflation
  11. occurs when consumers want to buy more goods and services than producers supply.
  12. Cost-push inflation
  13. occurs when producers raise prices because their costs to create products are rising.
  14. Productivity
  15. is a measure of the efficiency with which goods and services are made.
  16. Real-cost inflation
  17. as resources diminish or become harder to get, prices rise.
  18. Time value of money
  19. is a concept that says a dollar you will receive in the future is worth less than a dollar you receive today.
  20. Cost-plus pricing
  21. computes the total cost of making and delivering a product.
  22. Value-based pricing
  23. the seller tries to determine how much consumers will be willing to pay for the product.
  24. Market-based pricing
  25. the price is set to be competitive with prices of similar products currently being sold.
  26. Economizing
  27. when they are saving as much as possible and spending money only when necessary.
  28. Optimizing
  29. getting the highest value for the money spent.
  30. Advertising
  31. is a method of informing consumers and promoting and selling products.
  32. Target audience
  33. is a specific group of people who are likely to be watching and are likely to buy the product.
Card Set
Chapter 3 vocab words