University:
Bradley University
Course:
ECO 221 | Principles of Microeconomics
Academic year:

2021
Views:

418

Pages:

1
Author:

Angelica Rose

Chapter 3: Income and Purchasing Power Key Terms 1. advertising A method of informing consumers and promoting and selling products 2. cost-plus pricing Setting a price based on the cost to produce or acquire and deliver a product plus a markup for profit margin 3. cost-push inflation A situation in which producers raise prices to reflect higher costs of creating products 4. deflation 5. demand-pull inflation 6. disinflation 7. economizing 8. hyperinflation 9. inflation The lowering of overall price levels A situation in which prices increase because consumers want to buy more goods and services than producers supply A situation in which prices are rising, but at a slow rate A consumer spending pattern of saving as much as possible and spending only when necessary Rapidly rising, out-of-control prices increasing at rates of 50 percent or higher An increase in the general level of prices for goods and services 10. market-based Setting a price based on existing prices for similar products already in the marketplace pricing 11. optimizing 12. productivity 13. real-cost inflation 14. reflation A consumer spending pattern of spreading money to cover as many needs as possible or to get the highest value for the money spent A measure of the efficiency with which goods and services are made A situation in which prices increase because the cost of getting resources or the cost of resources themselves becomes more expensive A situation in which prices are high, drop, and then rise to their previous high level 15. target audience A specific group of people for whom advertising or other messages are created 16. time value of money A concept that says money received in the future is worth less than money received today because of inflation 17. value-based pricing Setting a price based on how much the seller thinks the consumer is willing to pay

Income and Purchasing Power Key Terms

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