Chapter 28-Our Free Enterprise System

Question 0

When a consumer gets action desired to resolve a problem with a product or service

Answer 0

Redress

Question 1

The willingness and ability of consumers to purchase a product

Answer 1

Demand

Question 2

Advertising an item at special savings that is in reality selling at regular price

Answer 2

Fake sale

Question 3

Reducing prices and qualities to the lowest unit possible to compare values

Answer 3

Unit pricing

Question 4

Vulnerable people are often subject to the schemes of con artists who convince them to invest their money in phony deals

Answer 4

True

Question 6

Manufacturers or makers of goods and services for sale

Answer 6

Producers

Question 8

When producers get together to set prices and do not engage in competition

Answer 8

Price-fixing

Question 9

Buyers and users of goods and services

Answer 9

Consumers

Question 10

The quantity of goods and services being produced

Answer 10

Supply

Question 11

Advertising repairs at low prices, then urging more repairs

Answer 11

Low-balling

Question 12

Occurs when more than one producer or supplier of a good or service exists, each trying to sell its product

Answer 12

Competition

Question 13

Buying on the spur of the moment

Answer 13

Impulse buyer

Question 14

The basic economic problem of unlimited consumer wants but limited resources to satisfy those wants

Answer 14

Scarcity

Question 15

Everyone is a producer and consumer in the market economy

Answer 15

False

Question 16

Demand is the quantity of goods and services available for sale

Answer 16

False

Question 17

Whenever consumers purchase a product, they are casting a dollar vote for that product

Answer 17

True

Question 18

It is necessary to have competition, purchasing power, and informed customers in a free enterprise system

Answer 18

True

Question 19

Satisfaction or reward received by consumers who by products

Answer 19

Utility

Question 20

The government shifts purchasing power among citizens by making transfer payments

Answer 20

True

Question 22

Government grants to some citizens paid with money collected from other citizens

Answer 22

Transfer payments

Question 23

Infomercials are advertisements involving product demonstrations and testimonials

Answer 23

True

Question 24

Consumer sovereignty is the power of consumers to determine what is produced and sold

Answer 24

True

Question 25

What are warning signals for a deceptive practice

Answer 25

Very low prices, something for nothing, and must decide today

Question 26

When seeking better redress

Answer 26

Contact the seller first

Question 27

What are types of transfer payments

Answer 27

Social security, welfare, and veterans’ benefits

Question 28

Transfer payments are … income because they are not obtained by working for them

Answer 28

Unearned

Question 30

Having money with which to buy goods and services

Answer 30

Purchasing power

Question 31

Schemes by which managers can make large profits by getting other workers to sell products to their friends

Answer 31

Pyramid scheme

Question 32

A fraudulent practice in which vulnerable people are convinced that they are investing in a legitimate enterprise

Answer 32

Pigeon drop

Question 33

Everyone is a

Answer 33

Consumer

Question 34

Who has the final say in what is produced and at what cost

Answer 34

Consumer

Question 35

An economy were both consumers and producers play important roles

Answer 35

Market

Question 38

A fantastic price offer on an item that is out of stock; customers are urged to buy another item at a higher price

Answer 38

Bait and switch advertisement