In Chapter 7, look at the pie chart in the "How Does Consumer Demand Affect The Nation's Economy?" section and complete the following questions: 1. In your opinion, what's the main point of this chart? 2. If we add up the total spending of the government, businesses, and consumers, what does it come to? Consumers in a Market Economy • In the Chapter 7 Exercises section, complete the matching and multiple- choice questions.

(Multiple choice)
1. A main idea of this chapter is that (a) consumer is important for the U. S economy (b) consumers have little to choose from (c) young people are not consumers (d) all consumers spend in the same way.

2. Olga bought a tie for dad in Parson's Department store. In this example, who is the consumer? (a) olga (b) the salesperson (c) the tie maker (d) the owner of the store

3. After the last bell rang, Job left school, bought some ice cream, rode the bus home, and telephoned Jane. Which of the items that used used is a good? (a) a bus ride (b) telephone (c) ice cream (d) education

4. In some ways all consumers are alike. This is because all consumers (a) have similar tastes and wants (b) share the same religious beliefs (c) are of the same age (d) buy to satisfy their needs

5. Which of the following is likely to decrease when consumer spending increases?( a) prices (b) business activity (c) unemployment (d) production

6. Which of the following is the most important factor in determining how much a consumer will spend? (a) age (b) size of income (c) religion (d) martial status

7. Buying which of the following is an example of conspicuous consumption? (a) school supplies (b) lunch (c) you will lose your job (d) expensive clothes or car

8. Under which circumstance would you be most likely to buy an item that you want now, rather than wait for a later time? you expect that soon (a) prices will rise (b) prices will fall (c) you will lose your job (d) a better product will be coming in the market

9. What is most likely to happen to the pattern of consumer spending ad family income increases? (a) spending for necessities decreases (b) the proportion of family income spent on necessities increase (c) the proportion of family income spent on luxuries increases (d) spending for luxuries decreases

10. Which of the following purchases most of the nations output of goods and services? (a) business firms (b) consumers (c) state and local governments (d) the federal government

Match each term in Column A with it's definition in Column B

(Column A)

1.Consumer
2.Producer
3.Consumptiom
4. consumer "vote"
5. goods and services
6 conspicuous
7."keeping up with the Joneses"
8. Necessities
9. Luxuries

(Column B)
a. those things that satisfy people's needs and wants
b. excessive spending done to impress others
c. an individual who buys or uses up goods or services for his or her own use
d. the spending to stay on the same social level as ones friends and neighbors
e. something that takes place when individuals buy or use goods or services
f. someone who makes goods or supplies services
g. goods and services that add to our enjoyment of life
h. something that occurs when a consumer buys a particular good or service
I. the goods and services we need to exist

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