Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) According to the textbook, it is estimated that what percentage of purchased products is never 1)
used?
A) 60% B) 1% C) 12% D) 30%
2) The belief that goods give meaning to individuals and their roles in society is called 2)
A) consumer economics. B) consumerism.
C) consumption. D) consumers.
3) Who is the founder of modern economics? 3)
A) Erin Brockovich B) Ralph Nader
C) Adam Smith D) Alan Greenspan
4) Intangible actions like work done to satisfy or provide for others are called 4)
A) consumption costs. B) goods.
C) fees. D) services.
5) A tangible object, something you can see and feel, like soap is considered a 5)
A) service. B) fee.
C) consumption cost. D) good.
6) The term caveat emptor translates to 6)
A) "demand drives the market." B) "may the buyer beware."
C) "the consumer is king." D) "the market is strong."
7) Non-traditional households include all of the following EXCEPT 7)
A) adult live-ins.
B) a husband, wife, and child under the age 18.
C) childless married couples.
D) single-parent families.
8) The study of human populations including characteristics such as size, growth, density, 8)
distribution, movement, and other vital statistics is called
A) consumer economics. B) geography.
C) social economics. D) demography.
9) The study of or science of production, distribution, and consumption is known as 9)
A) economics. B) demographics.
C) consumerism. D) consumer economics.
10) All of the following are parts of the business cycle EXCEPT 10)
A) expansion. B) recession. C) recovery. D) inflation.
1
, 11) In what type of economy are exchanges controlled by marketplace forces of supply and demand, 11)
rather than outside forces such as government control?
A) controlled economy. B) command economy.
C) market economy. D) consumer economy.
12) Monopoly means 12)
A) let the buyer beware. B) there are many sellers.
C) there is a single seller. D) the consumer is king.
13) An economic system in which nearly all capital is collectively owned is called 13)
A) Socialism. B) Capitalism.
C) Communism. D) Shared economy.
14) Consumer mediated environments (CME) refers to 14)
A) a communistic society. B) the consumer as being king.
C) a capitalistic society. D) buying and selling over the internet.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
15) Information search is a good idea, but can be costly. 15)
16) Alan Greenspan came up with the "invisible hand" theory. 16)
17) Consumption guarantees happiness. 17)
18) Approximately 50% of all U.S. families are considered "traditional households" by the U.S. 18)
Census Bureau.
19) Demographics refer to the data used to describe populations or subgroups. 19)
20) Consumption only takes place in a store between a buyer and a seller. 20)
21) Inflation is a steady decrease in price. 21)
22) Scarcity is the same as poverty. 22)
23) The law of supply states that as the supply of a good or service goes up, the price comes down. 23)
24) The law of demand states that as the price of a good or service rises, the quantity demanded 24)
rises.
25) The people born between 1977 and 1994 are known as the baby boomlets or echo-boomer 25)
generation.
26) Generation X is made of those people born between 1965 and 1976. 26)
27) In a command economy, most decisions about what, how and for whom to produce are made by 27)
those who control the government.
2
, 28) Consumer sovereignty means consumers, rather than producers, decide which goods will 28)
survive.
29) A market economy is also referred to as capitalism. 29)
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
30) Individuals or groups such as families who obtain, use, maintain, and dispose of 30)
products and services, to increase life satisfaction and fulfill needs are known as
____________________.
31) Things that are deemed necessary are called ____________________. 31)
32) Things wished for or desired are called ____________________. 32)
33) Unlimited wants combined with limited supplies create ____________________, a 33)
condition in which there is an insufficient amount or supply.
34) When supply and demand is equal, the ____________________ is reached. 34)
35) A(n) ____________________ is anything a consumer acquires or perceives to need. 35)
36) What is consumer economics? 36)
37) Explain Maslow's hierarchy of needs. 37)
38) What are the five parts to the consumption process? 38)
39) Define opportunity cost and give an example. 39)
40) What are the two parts to e -commerce? Briefly describe each. 40)
3
, Answer Key
Testname: UNTITLED1
1) C
2) B
3) C
4) D
5) D
6) B
7) B
8) D
9) A
10) D
11) C
12) C
13) C
14) D
15) TRUE
16) FALSE
17) FALSE
18) FALSE
19) TRUE
20) FALSE
21) FALSE
22) FALSE
23) TRUE
24) FALSE
25) TRUE
26) TRUE
27) TRUE
28) TRUE
29) TRUE
30) Consumers
31) Needs
32) Wants
33) Scarcity
34) Equilibrium price
35) Product
36) Consumer economics is the study of how people deal with scarcity, fulfill needs, and select among alternative
goods, services, and actions.
37) According to Abraham Maslow, humans have basic needs that have to be met before moving up to higher order
needs. In his hierarchy of needs, physiological needs such as hunger and thirst have to be at least partially met
before safety, love, and belongingness, esteem and self-actualization can be fulfilled.
38) The five parts of the consumption process are awareness, thinking, planning, implementing/acting, and evaluating.
39) Opportunity cost occurs when one alternative is selected over another and there is a cost attached to this choice. For
example, Tiger Woods decided to drop out of Stanford University because he did not have the time to pursue his
studies fulltime and golf fulltime. He joined the Pro Tour in 1996. His opportunity cost was giving up his schooling
to pursue his golf career.
40) E-merchandise is selling good and services electronically and moving items through distribution channels, for
example through Internet shopping for groceries, cars, tickets, music, etc.
E-finance is banking, debit cards, smart cards, banking machines, telephone and Internet banking, etc.
4
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) According to the textbook, it is estimated that what percentage of purchased products is never 1)
used?
A) 60% B) 1% C) 12% D) 30%
2) The belief that goods give meaning to individuals and their roles in society is called 2)
A) consumer economics. B) consumerism.
C) consumption. D) consumers.
3) Who is the founder of modern economics? 3)
A) Erin Brockovich B) Ralph Nader
C) Adam Smith D) Alan Greenspan
4) Intangible actions like work done to satisfy or provide for others are called 4)
A) consumption costs. B) goods.
C) fees. D) services.
5) A tangible object, something you can see and feel, like soap is considered a 5)
A) service. B) fee.
C) consumption cost. D) good.
6) The term caveat emptor translates to 6)
A) "demand drives the market." B) "may the buyer beware."
C) "the consumer is king." D) "the market is strong."
7) Non-traditional households include all of the following EXCEPT 7)
A) adult live-ins.
B) a husband, wife, and child under the age 18.
C) childless married couples.
D) single-parent families.
8) The study of human populations including characteristics such as size, growth, density, 8)
distribution, movement, and other vital statistics is called
A) consumer economics. B) geography.
C) social economics. D) demography.
9) The study of or science of production, distribution, and consumption is known as 9)
A) economics. B) demographics.
C) consumerism. D) consumer economics.
10) All of the following are parts of the business cycle EXCEPT 10)
A) expansion. B) recession. C) recovery. D) inflation.
1
, 11) In what type of economy are exchanges controlled by marketplace forces of supply and demand, 11)
rather than outside forces such as government control?
A) controlled economy. B) command economy.
C) market economy. D) consumer economy.
12) Monopoly means 12)
A) let the buyer beware. B) there are many sellers.
C) there is a single seller. D) the consumer is king.
13) An economic system in which nearly all capital is collectively owned is called 13)
A) Socialism. B) Capitalism.
C) Communism. D) Shared economy.
14) Consumer mediated environments (CME) refers to 14)
A) a communistic society. B) the consumer as being king.
C) a capitalistic society. D) buying and selling over the internet.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
15) Information search is a good idea, but can be costly. 15)
16) Alan Greenspan came up with the "invisible hand" theory. 16)
17) Consumption guarantees happiness. 17)
18) Approximately 50% of all U.S. families are considered "traditional households" by the U.S. 18)
Census Bureau.
19) Demographics refer to the data used to describe populations or subgroups. 19)
20) Consumption only takes place in a store between a buyer and a seller. 20)
21) Inflation is a steady decrease in price. 21)
22) Scarcity is the same as poverty. 22)
23) The law of supply states that as the supply of a good or service goes up, the price comes down. 23)
24) The law of demand states that as the price of a good or service rises, the quantity demanded 24)
rises.
25) The people born between 1977 and 1994 are known as the baby boomlets or echo-boomer 25)
generation.
26) Generation X is made of those people born between 1965 and 1976. 26)
27) In a command economy, most decisions about what, how and for whom to produce are made by 27)
those who control the government.
2
, 28) Consumer sovereignty means consumers, rather than producers, decide which goods will 28)
survive.
29) A market economy is also referred to as capitalism. 29)
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
30) Individuals or groups such as families who obtain, use, maintain, and dispose of 30)
products and services, to increase life satisfaction and fulfill needs are known as
____________________.
31) Things that are deemed necessary are called ____________________. 31)
32) Things wished for or desired are called ____________________. 32)
33) Unlimited wants combined with limited supplies create ____________________, a 33)
condition in which there is an insufficient amount or supply.
34) When supply and demand is equal, the ____________________ is reached. 34)
35) A(n) ____________________ is anything a consumer acquires or perceives to need. 35)
36) What is consumer economics? 36)
37) Explain Maslow's hierarchy of needs. 37)
38) What are the five parts to the consumption process? 38)
39) Define opportunity cost and give an example. 39)
40) What are the two parts to e -commerce? Briefly describe each. 40)
3
, Answer Key
Testname: UNTITLED1
1) C
2) B
3) C
4) D
5) D
6) B
7) B
8) D
9) A
10) D
11) C
12) C
13) C
14) D
15) TRUE
16) FALSE
17) FALSE
18) FALSE
19) TRUE
20) FALSE
21) FALSE
22) FALSE
23) TRUE
24) FALSE
25) TRUE
26) TRUE
27) TRUE
28) TRUE
29) TRUE
30) Consumers
31) Needs
32) Wants
33) Scarcity
34) Equilibrium price
35) Product
36) Consumer economics is the study of how people deal with scarcity, fulfill needs, and select among alternative
goods, services, and actions.
37) According to Abraham Maslow, humans have basic needs that have to be met before moving up to higher order
needs. In his hierarchy of needs, physiological needs such as hunger and thirst have to be at least partially met
before safety, love, and belongingness, esteem and self-actualization can be fulfilled.
38) The five parts of the consumption process are awareness, thinking, planning, implementing/acting, and evaluating.
39) Opportunity cost occurs when one alternative is selected over another and there is a cost attached to this choice. For
example, Tiger Woods decided to drop out of Stanford University because he did not have the time to pursue his
studies fulltime and golf fulltime. He joined the Pro Tour in 1996. His opportunity cost was giving up his schooling
to pursue his golf career.
40) E-merchandise is selling good and services electronically and moving items through distribution channels, for
example through Internet shopping for groceries, cars, tickets, music, etc.
E-finance is banking, debit cards, smart cards, banking machines, telephone and Internet banking, etc.
4
