Consumer spending and saving

Why is consumer spending important to the economy?

• It helps determine spending habits

• It lets us know who is making economic decisions

• both A and C

• None of the above

under which circumstances would you be most likely to buy an item that you want now, rather than wait for a later time? You expect that soon...

• prices will rise

• prices will fall

• you will lose your job

• a better product will be coming on the market

what is most likely to happen to the pattern of consumer spending as a family income increases?

• spending on necessities decreases

• the proportion of family income spend on necessities increases

• the proportion of the family income spent on luxuries increases

• spending for luxuries decreases

which of the following purchases most of the nations output of goods and services?

• business firms

• consumers

• state and local governments

• the federal government

A spending plan is also known as a?

• Tax form

• Paper trail

• Well-being domain

• Budget

Why is consumer spending important to the economy?

• It helps determine spending habits

• It lets us know who is making economic decisions

• both A and C

• None of the above

in some ways, all consumers are alike. This is because all consumers...

• have similar tastes and wants

• share the same religious views

• are of the same age

• buy to satisfy their needs

which of the following is likely to DECREASE when consumer spending increases?

• prices

• business activity

• unemployment

• production

which of the following is the most important factor in determining how much a consumer will spend?

• age

• size of income

• religion

• marital status

buying which of the following is an example of conspicuous consumption?

• school supplies

• lunch

• tickets to a dance

• expensive clothes or car