Chapter 11: Personal Decision Making Vocabulary Review

Public Goods

• Goods or services that are available to all members of society, typically provided by the government.

• Products that are sold in the market and are exclusive to buyers.

• Items that are only accessible to certain individuals based on income.

• Services that are provided by private companies for profit.

Target Market

• A specific group of consumers identified as the intended audience for a product or service.

• A broad category of consumers with similar interests.

• Any consumer who shows interest in a product.

• A group of consumers who have purchased a product before.

Innovations

• New ideas, methods, or products introduced to improve processes or solve problems.

• Traditional practices that have been used for many years.

• Outdated techniques that are no longer effective.

• Common knowledge that does not require any new thinking.

Collective Values

• Shared principles or standards within a group or society.

• Individual beliefs that vary from person to person.

• Personal preferences that are not influenced by society.

• Temporary trends that change over time.

Sunk Cost

• A cost that has already been incurred and cannot be recovered.

• A cost that can be easily recovered in the future.

• A cost that is expected to be incurred in the future.

• A cost that is irrelevant to current decision-making.

Product Advertising

• Marketing efforts focused on promoting a specific product to consumers.

• A strategy to increase overall brand awareness.

• A method to reduce production costs.

• An approach to enhance customer service.

Life-Enhancing Wants

• Essential items necessary for survival.

• Non-essential items or services that improve quality of life.

• Basic needs that must be met for survival.

• Items that are harmful to one's well-being.

Custom

• Traditional practices or behaviors passed down within a culture or community.

• A modern trend that is widely accepted in society.

• A legal requirement enforced by the government.

• A personal preference that varies from individual to individual.

Loss Leader

• A product sold at a high price to maximize profit.

• A product sold at a low price to attract customers, often leading them to purchase other items.

• A product that is given away for free to increase brand awareness.

• A product that is bundled with other items to increase sales.

Values

• Principles or standards that guide behavior and decision-making.

• Random preferences that vary from person to person.

• Emotional responses to different situations.

• Cultural norms that dictate social interactions.