Jim Halpert
A characteristic of human wants is that they are
A. unlimited.
B. limited.
C. unchanging.
A. Unlimited
Explanation: Unlimited. People want so many things that their wants are considered unlimited—when one want is satisfied, there is at least one other want waiting to take its place. Wants are not consistent but rather vary from person to person and from age group to age group. This means that your wants will change, not remain the same.
An example of a noneconomic want would be the desire for
A) a college education.
B) police protection.
C) a friend.
A friend.
This want does not require you to spend money to satisfy it; therefore, it is a noneconomic want. Although police protection may appear to be a free service, it is provided through tax dollars. The desires for police protection, concert tickets, and a college education all require the consumer to spend money.
Susan is willing to pay a high price for the brand of china that she wants for her home. This china would be classified as a(n) __________ product.
A. Specialty
B. Convenience
C. Shopping
Specialty.
Specialty goods and services have special or unique characteristics that motivate consumers to exert special efforts to obtain them. In many cases, the special characteristic relates to the item’s brand name. Convenience goods and services are purchased with little thought or effort by ultimate consumers. Shopping goods and services are items for which the consumer has “shopped around” to get the best quality, price, and/or service. Industrial goods and services are purchased by producers.
A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good.
A. consumer
B. industrial
Consumer. Consumer goods and services are those that are purchased and used by ultimate consumers. Manufactured or constructed items that are used to produce goods and services are known as capital goods. Industrial goods and services are purchased by producers for resale, to make other goods and services, and/or to use in business operations. There is no such thing as an “ultimate” good.
Which of the following is an example of an economic want?
A. Fresh air
B. Clothing
C. Conversation
B. Clothing
Economic wants are desires for things that can only be obtained by spending money. To obtain clothing, people must spend money. Fresh air, conversation, and the understanding of others are noneconomic wants because they can be obtained without spending money.
If a good or service is scarce, consumers will usually be
A. uninterested in owning it.
B. able to get as much of it as they want.
C. willing to pay money to get it.
Willing to pay money to get it. A good or service is considered scarce when not everyone can have as much of it as desired. This makes consumers willing to pay for the item to obtain it. Since scarce items may be hard to locate, consumers may be more interested in owning them and willing to buy them.
An economic good or service that is scarce is one that is
A. not test-marketed.
B. in limited supply.
C. readily available.
In limited supply.
People cannot obtain scarce items in unlimited amounts. They may, therefore, be willing to pay more for them. Items that are readily available are in good supply. Where an item is made or whether it has been test-marketed does not always affect its scarcity.
Which of the following is an industrial good:
A. Matt’s cell phone
B. Emily's home computer
C. Tires for a tow truck
Tires for a tow truck. The tires have been purchased by the towing company for use in the operation of the business. To determine whether a good or service is a consumer or industrial item, you need to know who made the purchase and for what purpose. If the product was purchased by a business for use in its operations, then it is industrial.
Producers respond to consumers’ positive economic “votes” by
A. classifying their goods and services.
B. decreasing production.
C. increasing production.
Increasing production.
If a certain product is wanted by consumers, its production will be increased; however, if the item is not popular, its production will be cut back or stopped. Producers would not increase their production of industrial products in response to consumers’ needs since industrial products are used by businesses. Classifying goods and services helps marketers select appropriate marketing activities for a particular good or service.
How would a business’s computers be classified?
A. As parts
B. As equipment
C. As supplies
As equipment.
Equipment is used in the operation of a business but not in the actual production of a good or service. Supplies are industrial goods that are constantly being purchased and used up in the operation of a business. A part becomes part of a finished good without additional processing. Installations are industrial goods used to produce other goods and services.
Bread for a family would best be classified as a(n) __________ product.
A. specialty
B. convenience
C. Installation
Convenience.
A convenience good or service is a consumer product purchased quickly and without much thought or effort. It may be a staple item, such as bread, or an impulse item. When buying shopping goods and services, consumers compare products and stores by “shopping around” to get the best quality, price, and/or service. Specialty goods and services are items that have special or unique characteristics that customers are willing to exert special efforts to obtain. Installation is a category of industrial goods and services.
Each day, a restaurant sends its used linens to a laundry service to be cleaned and pressed. In economic terms, the laundry service would be classified as a(n) __________ service.
A. industrial
B. consumer
Industrial. Industrial goods and services are purchased by producers for resale, to make other goods and services, and/or to use in business operations. The laundry service is an industrial service because it is purchased by the restaurant as a necessary part of its daily operations. Consumer services refer to economic services used by ultimate consumers to satisfy wants and needs. Services are intangible, not tangible. There is no such thing as an “ultimate” service.
Sugar and flour that are purchased to make baked goods are classified as
A. Parts
B. Materials
C. Supplies
Materials.
Materials are items that will become part of a finished product after they have been processed. Sugar and flour need additional processing before they become baked goods. Parts are items that will become part of a finished product without any additional processing. Installations are high-cost, long-lasting items that are used to produce other goods and services. Supplies are items that are constantly being purchased and used up in the operation of a business.
Economic “votes” are cast by consumers each time they
A. make a purchase.
B. respond to a survey.
C. participate in market research
Make a purchase.
When consumers make a purchase, they are voting for the product(s) that they decided to buy and against the others. This influences which products will be produced and at what price they will be sold. Market research uses surveys, interviews, and other methods to identify consumers and their buying habits. Consumers who visit a business without making purchases do not provide the business with any information.
A car manufacturer receives a shipment of bolts that are going to be used in the production of automobiles. What type of industrial product would the bolts be?
A. Parts
B. Materials
C. Service
Parts.
Parts are items that will be part of a finished product but do not require any additional processing. Materials are items that become part of a finished product after they have been processed. Equipment is industrial goods used in the operation of a business but not used in the actual production of a good or service. Supplies are industrial products that are constantly being purchased and used up in the operation of the business.
George has decided to purchase a dishwasher. He is checking the newspaper ads for the best place to get quality goods and services at a reasonable price. What type of product is the dishwasher?
A. Convenience
B. Industrial
C. Shopping
Shopping.
Shopping products are consumer products that are purchased by consumers after comparing products and stores to get the best quality, price, and/or service. Capital goods are manufactured or constructed items used in the production of goods and services. Convenience goods and services are purchased quickly and without much thought or effort by ultimate consumers. Specialty goods are consumer products with special or unique characteristics that consumers are willing to exert special efforts to obtain.
What determines whether an economic product is an industrial product or a consumer product?
Who buys and uses the product.
Industrial products are purchased by producers for resale, to use in making other goods and services, and/or to use in business operations. Consumer goods and services are purchased and used by the ultimate consumer. Price, origin, and producer have no bearing on whether a product is a consumer or an industrial item; it is simply a matter of who buys the item and for what purpose.
Explain an ethical situation.
Various Answers
Define "ethical dilemma"
Deciding whether something
is right or wrong
Someone (or something)
could be harmed.
Name one reason for an ethical dilemma.
Various Answers
Name 3 reasons why people purchase industrial goods
For resale
To make other goods and services
To use in business operations