Consumer Spending Factors Quiz

What are the main factors influencing the level of consumer spending?

• Interest rates, income levels, and consumer confidence

• Weather patterns, geographical location, and time of year

• Brand popularity, advertising, and product availability

• Government policies, international trade, and technological advancements

Which factor affects consumer spending by influencing the willingness to borrow?

• Real disposable incomes

• Employment & job security

• Consumer credit

• Asset prices

What is the impact of changes in asset prices on consumer spending?

• No effect

• Possible wealth effect

• Decrease in spending

• Increase in taxes

What does the cost of servicing a mortgage refer to?

• Direct taxes

• Monthly interest payments on a home loan

• Government welfare payments

• Consumer credit availability

What might persistent price deflation affect in terms of consumer spending?

• Increase in taxes

• Future price expectations

• Employment rates

• Government spending

What term is used to describe the general state of consumer confidence or pessimism?

• Real disposable income

• Asset prices

• Animal spirits

• Employment security

What is the general trend of mortgage interest rates in the UK from 2000 to 2023?

• Consistently increasing

• Consistently decreasing

• Fluctuating with periods of increase and decrease

• Remaining constant

What does the graph in the image represent?

• UK inflation rate

• UK unemployment rate

• UK GDP growth rate

• UK interest rate

During which period did the UK unemployment rate peak according to the graph?

• 1970s

• 1980s

• 1990s

• 2000s

What is consumer confidence?

• A measure of how optimistic consumers are about the overall state of the economy and their personal financial situation.

• A measure of the amount of money consumers spend on luxury goods.

• A measure of the number of consumers in a market.

• A measure of consumer satisfaction with products.