Which phrase defines 'consumerism' best?

• A. A system where the government controls all aspects of production and distribution.
• B. The study of how individuals allocate limited resources to satisfy unlimited wants.
• C. The process by which businesses produce goods for sale in the market.
• D. The belief that increasing consumption of goods and services is beneficial to the economy and individual well-being.

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the term 'consumerism' in the context of microeconomics. Consumerism generally relates to the behavior and attitudes of consumers towards purchasing goods and services.
2. Step 2: Review each provided phrase carefully and identify which one aligns with the concept of consumerism. For example, phrases about government control or production processes are related to other economic concepts, not consumerism.
3. Step 3: Recognize that consumerism emphasizes the belief that increasing consumption of goods and services is beneficial both to the economy and to individual well-being. This reflects a cultural or economic attitude rather than a system of production or resource allocation.
4. Step 4: Eliminate options that describe government control (which relates to command economies), the study of resource allocation (which defines economics broadly), and production processes (which relate to firms and supply).
5. Step 5: Conclude that the phrase defining consumerism best is the one highlighting the belief in the benefits of increased consumption for economic growth and personal welfare.