One of the Fundamental Premises of the Modern Field of Consumer

question 34

Multiple Choice

One of the fundamental premises of the modern field of consumer behaviour is that people often buy products, not for what they do, but for what they:

• A) cost
• B) promise
• C) mean
• D) look like
• E) appear to do

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries to raise state revenue or to protect domestic industries.

Total Surplus

The total net gain to consumers and producers from trading in a market, represented by the sum of consumer and producer surplus.

Employment

The condition in which an individual who is capable of working is engaged in a paid job.

Small Country Assumption

An economic model assumption that a country's market size is small enough that its actions do not affect world prices or incomes.