Deck 11: Consumption

Question 1

Which of the following orderings (going from highest to lowest)is correct with respect to the percentage of U.S.GDP?

A) (1)Government; (2)Consumer purchases; (3)Investment; (4)Foreign trade
B) (1)Investment; (2)Government; (3)Consumer purchases; (4)Foreign trade
C) (1)Investment; (2)Consumer purchases; (3)Government; (4)Foreign trade
D) (1)Consumer purchases; (2)Investment; (3)Foreign trade; (4)Government
E) (1)Government; (2)Consumer purchases; (3)Foreign trade; (4)Investment

Answer 1

D

Question 2

The circular model basically says that

A) most people work in order to produce, and produce in order to live.
B) most people produce in order to consume, and consume in order to survive.
C) most people produce and consume in a never-ending cycle fueled by marketing.
D) most people work in order to consume, and consume in order to live.
E) most people consume more than they produce.

Answer 2

D

Question 3

What two new entities arose along with the rise of the global economy in the 16th century?

A) a class of people with relatively large incomes to spend, and the availability of desirable goods from around the world
B) feudalism and serfs
C) monarchies and taxation
D) a middle class and the governments to tax them
E) an upper elite class who could purchase many luxury goods and workers who produced the goods but could not afford to purchase them

Answer 3

A

Question 4

Consumerism involves not just the purchase of goods,but the entire experience of

A) taking care of the item purchased to maximize its useful life.
B) paying sales tax.
C) shopping.
D) returning defective products.
E) using a credit card.

Question 5

According to your textbook,which of the following have evolved from early forms of consumption?

A) The association of romance with consumption (as in "there's no romance without the finance") led to the invention of dating among couples.
B) Clean clothes became the norm expected of an increasingly larger fraction of society.
C) Child rearing came to include the purchase of goods to comfort children.
D) Purchasing came to be naturalized as keys to happiness, success, relief from pain and boredom, and a positive self-image.
E) all of the above

Question 6

What principle,embodied by the phrase,"Waste not,want not," did rising consumerism threaten?

A) thrift
B) charity
C) democracy
D) environmentalism
E) capitalism

Question 7

Where and when did the first department stores open?

A) London in 1815
B) New York City in the 1850s
C) Tokyo (then Edo) in the early 1800s
D) Paris in the 1830s
E) Constantinople in the 1780s

Question 8

Why is consumption so important internationally?

A) It constitutes the bulk of economic activity of most countries.
B) It plays an important political role.
C) It is driven by international marketing efforts.
D) It is on the decline.
E) It is closely associated with the United Nations.

Question 9

All of the following are true of U.S.consumption EXCEPT

A) it comprises the majority of GDP.
B) it is a major interface between individual and society.
C) U.S. consumption patterns have global multiplier effects.
D) it is very complex because it is the intersection of so many spheres of life.
E) U.S. consumption patterns only affect the U.S. economy.

Question 10

The authors of your textbook suggest that as a social category,consumption is an invention of

A) socialism.
B) capitalism.
C) political leaders.
D) royalty.
E) the feudal system.

Question 11

What percentage of the U.S.gross domestic product (GDP)consists of consumer or household purchases (consumption)?

A) 25%
B) 35%
C) 55%
D) 75%
E) 80%

Question 12

The modern form of consumption is

A) conspicuous consumption.
B) epitomized by HDTV.
C) highly regulated.
D) consumerism.
E) heavily taxed.

Question 13

With which of the following is consumption most closely intertwined?

A) international terrorism
B) democratization
C) urbanization
D) environment
E) production

Question 14

Which types of purchases have decline as a share of spending in the U.S.?

A) home purchases
B) food and clothing
C) medical care
D) holiday shopping
E) none of the above

Question 15

Because capitalism thrives on newness,what has been an integral part of the rise of mass consumption?

A) research and development to invent ever newer and more desirable products
B) government-funded research to provide the basic research that lays the foundation for applications in consumer goods
C) advertising to generate new ideas and desires
D) patent and copyright protection to encourage researchers to develop new products
E) competition between firms to develop the best new products

Question 16

Objections to consumerism had ________ overtones.

A) environmental
B) social
C) political
D) cultural
E) religious

Question 17

Before consumerism could take hold,societal changes had to take place.These include all of the following EXCEPT

A) ideas of thrift as a positive personal attribute had to be changed.
B) religious ideas that scorned the material world had to be changed.
C) the ideals of individualism had to take hold in society.
D) all of the above
E) A and B only

Question 18

What single development enabled a growing middle class to purchase more goods in the Industrial Revolution of the 18th Century?

A) lower prices caused by the precursor of Walmart
B) higher incomes caused by improved education and jobs
C) lower taxation caused by efficient governments
D) higher incomes created by the discovery of gold
E) lower prices caused by mechanization an mass production

Question 19

How have economic geographers come to view consumption recently?

A) in social terms
B) in economic terms
C) in moral terms
D) in environmental terms
E) in political terms

Question 20

In premodern societies,which group of people accounted for the bulk of consumption?

A) the large number of peasants
B) the military
C) the relatively few elites
D) religious entities
E) There was no consumption as we know it in the economic sense in premodern societies.

Question 21

Which notion had to be undermined in order for the credit card to take hold as an integral part of consumption?

A) thrift
B) "waste not want not"
C) delayed gratification
D) a penny saved is a penny earned
E) commodification of conscience

Question 22

In what period did average satisfaction levels in the U.S.peak?

A) 1920s ("Roaring Twenties")
B) 1950s (era of "Leave It To Beaver")
C) 1960s (Vietnam era)
D) 1980s (Reagan era)
E) U.S. satisfaction levels are at their highest peak now.

Question 23

After World War II,the expansion of consumerism was closely linked to the growth of

A) state sales tax in the U.S.
B) value added tax in Europe.
C) credit.
D) television.
E) all of the above

Question 24

In what countries did consumerism primarily start?

A) Britain and the U.S.
B) France and Canada
C) Netherlands and Belgium
D) Japan and Germany
E) Italy and Greece

Question 25

Which societies have been most successful in keeping consumerism in check?

A) societies with a strong military
B) societies with communist and socialist governments
C) societies with a well-educated populace
D) societies with deep religious principles
E) societies with Cultural Nationalism laws

Question 26

What portion of the average newspaper is devoted to advertising?

A) 66%
B) 50%
C) 30%
D) 15%
E) 5%

Question 27

What did Jeremy Bentham use to provide a standard measure of happiness?

A) the value of the goods that one owned
B) euros
C) dollars
D) family income
E) utils

Question 28

Which term refers to the psychology of consumerism in which more is never enough?

A) consumerism
B) consumption
C) conspicuous consumption
D) affluenza
E) consumeritis

Question 29

According to your textbook,more people go bankrupt each year than

A) own cars.
B) go to college.
C) have internet connections.
D) watch the Super Bowl.
E) all of the above

Question 30

Who coined the term "conspicuous consumption"?

A) German sociologist Max Weber
B) German geographer Alfred Weber
C) English philosopher Jeremy Bentham
D) American sociologist Thorsten Veblen
E) Anonymous

Question 31

What has happened to U.S.savings rates since the 1980s?

A) They have declined steadily, and were at zero in 2004.
B) They have increased steadily, and were at 4% in 2005.
C) After increasing up until 2000, savings rates have dropped to near zero since.
D) After declining dramatically until 2000, they are back up and are now at an all-time high.
E) They have held steady at 7%.

Question 32

Which group of people comprises the bulk of consumers?

A) the wealthy, because their wealth allows them to do so
B) women, because they are typically responsible for buying necessities for the household and everyone in it
C) males, because their incomes are higher than women's incomes
D) children, because their needs are so great and because college bills are high
E) the elderly, because their numbers are increasing and because many of them purchase a large amount of health care

Question 33

How do Americans pay for their consumerism?

A) by getting an education so that they can earn more money
B) by saving their money until they can afford items that they need and want
C) by working more hours than they did in the 1960s
D) by continually seeking better employment with a higher salary
E) by mooching off their parents

Question 34

How many television advertisements has the average American seen by the age of 20?

A) 50 thousand
B) 100 thousand
C) 250 thousand
D) 500 thousand
E) One million

Question 35

The traditional view of credit was grounded in

A) the Protestant work ethic that often regarded debt as sinful.
B) principles of Democracy that emphasize equal opportunity for all consumers, and saw debt as a way to level the playing field of consumption.
C) Islamic law which prohibits credit, even at low rates of interest, because it is usurious.
D) capitalism, which views debt as a legitimate means to create wealth (for the lender).
E) Buddhism, which encourages people to minimize their wants in order to free themselves from the need to use credit.

Question 36

Consumption

A) varies greatly by age group.
B) levels remain constant over time, with people purchasing mainly the same types of things.
C) is highly gendered.
D) changes according to income levels.
E) varies by race or ethnicity.

Question 37

Increased consumption has been accompanied by all of the following EXCEPT

A) higher levels of happiness.
B) higher levels of depression and suicide.
C) higher levels of debt.
D) higher level of boredom.
E) higher levels of self-centeredness.

Question 38

What does the law of diminishing marginal utility posit?

A) As a person consumes decreasing quantities of a given good, the pleasure she derives from it increases.
B) As a person consumes increasing quantities of a given good, he must produce more to afford it.
C) As a person consumes increasing quantities of a given good until he is satisfied.
D) As a person consumes increasing quantities of a given good, the pleasure she derives from it increases, but at a decreasing rate.
E) Over time, and through experience, people learn what quantities of a given good give them the greatest pleasure.

Question 39

What is the objective of conspicuous consumption?

A) To purchase and enjoy products that are needed
B) To identify oneself as a potential philanthropist for the needy
C) To display wealth and status as a social statement to others
D) To accumulate wealth that one's children will someday inherent
E) To acquire goods that will increase in value as a long-term investment

Question 40

What change in U.S.law encouraged the expansion of credit?

A) higher taxation of income from investments
B) elimination of income averaging for taxpayers
C) elimination of an exemption for non-mortgage borrowing
D) deregulation of the banking industry
E) all of the above

Question 41

Criticisms of neoclassical economic theory include all of the following EXCEPT

A) it has a lack of historical or social context.
B) this theory does not represent consumption as a social act as well as an economic one.
C) it assumes that people's choices don't affect each other.
D) humans generally act rationally in economic matters.
E) it is difficult to reduce social problems to individual causes and solutions.

Question 42

The economically developed world constitutes 1/5 of the world's population.However,this portion consumes about 40% of which of the following?

A) meat
B) energy
C) paper
D) vehicles
E) all of the above

Question 43

The interest in commodity chains has been traced to concerns about

A) the origins of products.
B) the quality of products.
C) the ethical implications of products.
D) all of the above
E) none of the above

Question 44

Where do most of the cheap goods that we consume come from?

A) modern factories where workers have benefits
B) state-of-the-art manufacturing centers where robotics do most of the work
C) farm fields
D) sweatshops
E) oil refineries

Question 45

Under the Law of Diminishing Marginal Utility,spending levels reflect the dynamics of

A) the labor market.
B) unemployment rates.
C) wage levels.
D) prices.
E) all of the above

Question 46

Under the Law of Diminishing Marginal Utility,what do utility curves represent?

A) what consumers can do
B) what consumers would like to do
C) what consumers actually do
D) what governments constrain consumers to do
E) what employers limit consumers to do

Question 47

For Marxists,labor is a commodity whose use value to employers is

A) more than its exchange value in wages.
B) equal to its exchange value in wages.
C) less than its exchange value in wages.
D) unrelated to its exchange value in wages.
E) leads to the problem of producing too little.

Question 48

What has happened to commodity chains as capitalism has globalized?

A) They are taxed more and more.
B) They are increasingly threatened by global terrorism.
C) They involve fewer, but more powerful, multinational firms.
D) They generate higher transportation costs.
E) They get longer and longer.

Question 49

Under the Law of Diminishing Marginal Utility,what factor limits our ability to rise from Utility line 1 to Utility line 2?

A) the economy
B) our credit
C) our income
D) our conscience
E) our access to information

Question 50

Commodity chains include such diverse products as

A) coffee.
B) gold.
C) meat.
D) all of the above
E) A and B only

Question 51

According to your text,________ is the dominant form of public life.

A) voting
B) shopping
C) volunteerism
D) running for political office
E) serving in the military

Question 52

According to your text,because consumption is linked to other domains such as transportation and production,every act of consumption imposes changes on

A) the legal system.
B) the Interstate Highway System.
C) the environment.
D) international airlines.
E) product design.

Question 53

Geographies of consumption include

A) the human body.
B) the shopping mall.
C) commodity chains.
D) all of the above
E) B and C only

Question 54

For Marxists,the internal contradictions that capitalism faces in regards to consumption include all of the following EXCEPT

A) getting more and more profit out of goods inevitably leads to overconsumption.
B) producing too much drives down prices, and thus, profits.
C) employers cannot pay their workers the value of the products they produce.
D) getting more and more profit out of goods inevitably leads to underconsumption.
E) all of the above

Question 55

Marx argued that commodities are

A) just things.
B) too expensive.
C) important for the happiness they bring.
D) embodiments of social relations.
E) at the heart of an economic system.

Question 56

A child in which of the following countries would have the biggest environmental footprint?

A) Namibia
B) Australia
C) Vietnam
D) Bolivia
E) Yemen

Question 57

What happens at each stage of the commodity chain?

A) The commodity is transformed and value is added.
B) Workers who produce the commodity are treated unfairly.
C) The commodity is in danger of contamination.
D) Producers make money.
E) The government collects a tax of some sort.

Question 58

Consumption means the use of goods and services to satisfy individual and collective wants and needs.

Question 59

Consumption most closely intertwined with urbanization.

Question 60

A child in which of the following countries would have the smallest environmental footprint?

A) Australia
B) Namibia
C) Brazil
D) Canada
E) Italy

Question 61

The exchange value of commodities,as posited by Marx,is their qualitative,subjective dimension.

Question 62

American sociologist Thorsten Veblen coined the term "conspicuous consumption."

Question 63

For Marxists,labor is a commodity whose whose use value to employers is more than its exchange value in wages.

Question 64

Consumerism primarily started in Britain and the U.S.

Question 65

Consumerism is the systematic creation of consumer wants via advertising,and the culture and values that result in privileging shopping over other activities.

Question 66

Research and development has been an integral part of the rise of mass consumption.

Question 67

Consumption is a major interface between the rich and poor.

Question 68

Rising consumerism threatened the principle of charity,which is embodied by the phrase,"Waste not,want not."

Question 69

Consumption important internationally because it constitutes the bulk of economic activity of most countries

Question 70

Total household debt as a percentage of personal disposable income has remained steady in the U.S..

Question 71

The authors of your textbook suggest that as a social category,consumption is an invention of capitalism.

Question 72

What does the law of diminishing marginal utility posits that as a person consumes increasing quantities of a given good,the pleasure she derives from it increases,but at a decreasing rate.

Question 73

The objective of conspicuous consumption is to purchase and enjoy products that are needed.

Question 74

After World War II,the expansion of consumerism was closely linked to the growth of credit.

Question 75

Since the 1980s,U.S.savings rates have remained steady at 4%.

Question 76

Consumerism is the term used to describe "materialism run amuck."

Question 77

According to your textbook,advertising converts luxuries into necessities.

Question 78

Americans pay for their consumerism by working more hours than they did in the 1960s.

Question 79

Consumption tends to be seasonally sensitive.

Question 80

The modern form of consumption is consumerism.