Chapter 6 Vocab Flashcards Preview

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Flashcards in Chapter 6 Vocab Deck (37):
0

Total Income earned by everyone in the economy.

National Income

1

Total income that individuals receive before personal taxes are paid.

Personal Income

2

Any person or group that buys or uses goods and services to satisfy personal needs and wants.

Consumer

3

Income remaining for a person to spend or save after all taxes have been paid.

Disposable Income

4

Money income a person has left to spend on extras after necessities have been bought.

Discretionary Income

5

Choosing the alternative that has the greatest value from among comparable quality products.

Rational Choice

6

Advertising that attempts to persuade consumers that a product is different from and superior to any other.

Competitive Advertising

7

Advertising that benefits consumers by giving information about a product.

Informative Advertising

8

Deceptive advertising practice that attracts consumers with a low-priced product, then tries to sell them a higher-priced product.

Bait and Switch

9

Getting information on the types and prices of products available from different stores and companies before purchasing a product.

Comparison Shopping

10

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.

Warranty

11

Word, picture, or logo on a product that helps consumers distinguish it from similar products.

Brand Name

12

General name for a product rather than a specific brand name given by the manufacturer.

Generic Brand

13

Movement to educate buyers about the purchases they make and to demand better and safer products from manufactures.

Consumerism

14

Store that carries a limited number of brands and items in large quantities; less expensive than supermarkets.

Club warehouse store

15

Store open 16-24 hours a day, carrying a limited section of relatively higher priced items.

Convenience Store

16

Lower priced store brand products carried by some supermarket chains and club ware-house chains.

Private-Labeled Products

17

Ability of an item to last a long time.

Durability

18

Amount of use a person gets from an item over time and the value a person places on this use

Service Flow

19

Fees involved in arranging for a mortgage or in transferring ownership of a property.

Closing costs

20

Fees paid to a lender and computed as percentage points of a loan.

Points

21

Long-term agreement describing the terms under which property is rented.

Lease

22

Money a renter lets an owner hold in case the rent is not paid or an apartment is damaged.

Security Deposit

23

Licensing fee, usually annual, paid to a state for the right to use a car.

Registration Fee

24

Insurance that pays for bodily injury and property damage.

Liability insurance

25

Setting aside income for a period of time so that it can be used later.

Savings

26

Payment people receive when they lend money or allow someone else to use their money.

Interest

27

Account for which a depositor receives a booklet in which deposits, withdrawals, and interest are recorded.

Passbooks Savings Account

28

Account similar to a passbook savings account except that instead of a passbook the depositor receives a monthly statement showing all transactions.

Statement Savings Account

29

Account that pays relatively high rates of interest, required a minimum balance, and allows immediate access to money.

Money Market deposit account

30

Savings plan that require savers to leave their money on deposit for certain periods of time.

Time Deposits

31

Period of time at the end of which time deposits will pay a stated rate of interest.

Maturity

32

Time deposits that state the amount of a deposit, maturity, and rate of interest being paid

Certificates of Deposit

33

People who have invested in a corporation and own some of its stock.

Stockholders

34

Increase in value of an asset from the time it was bought to the time it was sold.

Capital Gains

35

Decrease in value of an asset or bond from the time it was bought to the time it was sold.

Capital Loss

36

Tax-Exempt Bond

Bonds sold by local and state governments; interest paid on the bond is not taxed by the Federal Government.