The Market System Is Said to Be Characterized by "Consumer

question 62

Multiple Choice

The market system is said to be characterized by "consumer sovereignty." This is because

• A)a sovereign government determines which consumer goods will be produced.
• B)the prices of consumer goods are regulated by a sovereign government.
• C)firms must match their production decisions to the consumers' choices.
• D)consumer goods are considered to be more important than capital goods.

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Definitions:

Time Lag

The delay between the initiation of an action or process and its effect or outcome.

Social Shopping

The use of social network services and websites by consumers to share their latest purchases, deals, coupons, product reviews, want lists, and other shopping finds with friends and contacts.

Viral Marketing

A marketing strategy that encourages individuals to share a marketing message to others, creating a potential for exponential growth in the message's exposure and influence.

Product Reviews

Evaluations or assessments of a product's performance, quality, or suitability, often written by consumers or professional critics.