The "Economic-Buyer" Model

question 84

Multiple Choice

The "economic-buyer" model:

• A) is seen as too simplistic by most marketing managers.
• B) assumes that consumers are affected by psychological variables and social influences.
• C) suggests that men and women behave differently as buyers.
• D) assumes that buyers don't have enough information to make logical choices-and as a result buy products that are not a good value.
• E) None of these is true of the economic-buyer model.

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Definitions:

Economic Decisions

Choices made by individuals, businesses, or governments regarding the allocation of scarce resources to satisfy needs and desires.

Excess Burden

The loss of economic efficiency that occurs when a tax or government policy distorts consumer behavior or market outcomes, leading to a decrease in total welfare.

Tax Revenue

The financial gains obtained by governments from tax collection.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is unachievable.