Marketing Chapter 3

True or False: A private enterprise economy is heavily regulated by government.

False

True or False: Consumers have limited resources and unlimited needs and wants.

True

Changes in a product's physical features affects its ________ utility.

Form

True or False: A larger supply of a product will usually cause consumers to place a lower value on it.

True

When the price of a product is increased, a smaller quantity will be purchased. That statement is known as which of the following?

The Law of demand

True or False: Economic resources are classified as natural resources, capital, equipment, and consumers.

True

In pure competition, there are a large number of suppliers offering which of the following?

Very similar product

True or False: Economic utility is the amount of profit businesses make from selling a product.

False

True or False: The quantity of a product that producers are willing and able to provide at a specific price is known as demand.

False

Locating an automated teller machine in an airport is an example of improving the ________ utility for banking services.

Place

controlled economy

A system where government attempts to own and control important resources and to make the decisions about what will be produced and consumed.

Law of Demand

The relationship that dictates that when the price of something is increased, less of it will be demanded, and when the price is decreased, more will be demanded.

Monopoly

The type of market in which there is only one supplier offering a unique product.

Scarcity

The result of unlimited wants and needs combined with limited resources.

Oligopoly

The type of market in which there are a few businesses offering very similar products.

regulated economy

A system where the resources and decisions are shared between the government and other groups or individuals.

private enterprise

The economic system based on independent decisions by businesses and consumers with only limited government intervention.

Macroeconomics

The study of economic behavior and relationships for the entire society.

demand curve

A graph of the relationship between price and quantity demand.

profit motive

The use of resources toward the greatest profit for the producer.

economic market

All of the consumers who will purchase a particular product or service.

market price

The point where supply and demand for products are equal.

supply curve

A graph of the relationship between price and quantity supply.

pure competition

The type of market in which there are a large number of suppliers offering very similar products.

Economic Utility

The amount of satisfaction a consumer receives from the consumption of a product or service.

Microeconomics

The study of economic relationships between individual consumers and producers.

monopolistic competition

The type of market in which there are many competing businesses offering products that are somewhat different.