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Personal FInance Test 3
Terms in this set (25)
An increase in the general level of prices for goods and services is known as....
Inflation increases or decreases a buyer's purchasing power?
Prices are still rising but the rate of increase is slowing down
Prices are lowered due to a temporary decrease in demand but then are restored to a previously high level
Prices are rising so fast that they are out of control (typically 50% or higher rate of inflation)
A decrease in the general level of prices for goods and services
True or False...rising inflation is usually linked with higher employment
Prices that are set high after a product is first produced in order to recoup the costs of research and development is what type of price setting?
Adding a certain markup or profit margin to the cost of producing a product is what type of price setting?
Conducting market research to see how much consumers are willing to pay for a product is what type of price setting?
Setting a price to be competitive with other products and retailers is what type of price setting?
Buying an item based on your feelings
Buying an item based on a spur of the minute decision
Often a product is sold with a guarantee of its quality and performance
When a business wants to sell everything right now, they may run this type of sale
What is the US government's measuring tool for inflation?
Consumer Price Index (CPI)
What is the cause of inflation when inflation occurs due to an increase in demand (probably because of higher wages
What is the cause of inflation when inflation occurs due to an increase in costs to create products
Cost push inflation
What type of inflation occurs because the supply of a particular resource is scarce and it is driving up prices
In advertising, creating an ad to appeal to a specific group of people who are likely to buy the product...what is the specific group of people known as
measure of the efficiency with which goods and services are made
Files created by a website to track the visitors to the site
A dollar you receive today will be worth less tomorrow
time value of money
federal agency is responsible for air traffic and airplane inspections
Making a copy of a CD or downloading it to a portable device for personal use is acceptable according to what
Consumer Technology Bill of Rights
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