What term refers to how positive consumers feel about spending?

Study for the NCEA Level 1 Business Studies Test. Engage with interactive questions, complete with hints and detailed explanations. Prepare effectively for your exam!

The correct term for how positive consumers feel about spending is "Consumer Confidence." This concept reflects the overall optimism or pessimism that consumers have about the economy and their personal financial situation, influencing their willingness to spend money. When consumer confidence is high, individuals are more likely to engage in discretionary spending, which can lead to increased economic activity. This sentiment is crucial for businesses, as higher consumer confidence often translates into higher sales and business growth prospects.

In contrast, terms like Market Stability and Investment Readiness do not specifically address consumer sentiment regarding spending. Market Stability relates to the predictability of various market forces and the overall economic climate, while Investment Readiness describes how prepared a business or individual is to make investments based on available resources and risk assessment. Consumer Demand, although relevant in discussing what consumers want to buy, does not directly encapsulate their feelings towards spending. Thus, Consumer Confidence clearly stands out as the correct choice.

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