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80) Recognized for excellence by Advertising Age, Alma creates advertising to reach diverse
segments by searching "for that intangible fiber that touches the lives of consumers creating
relevant and unique business-building communication ideas." Alma has created Hispanic
campaigns for McDonald's, Sprint, and Clorox as a part of their programs incorporating
A) psychographic differences.
B) population inputs.
C) multicultural marketing.
D) a value consciousness.
E) macroeconomics.
81) The set of values, ideas, and attitudes that are learned and shared among the members of a
group is referred to as
A) customs.
B) morals.
C) norms.
D) culture.
E) ethics.
82) Culture refers to the
A) moral and ethical beliefs of a family passed down from generation to generation.
B) set of values, ideas, and attitudes that are learned and shared among the members of a group.
C) pastimes associated with the fine arts, such as ballet, music, and theater.
D) standard or pattern of behaviors that is typical or expected of a group.
E) description of a population according to selected characteristics such as age, gender, ethnicity,
income, and occupation.
84) According to some predictions regarding attitudes and the roles of men and women, which of
the following is most likely to occur?
A) The attitudes of men toward women will change more dramatically than the attitudes of
women toward men.
B) The attitudes of women toward men will change more dramatically than the attitudes of men
toward women.
C) The buying habits of women will become much more predictable than those of men.
D) The gap between buying patterns of men and women will grow.
E) The gap between buying patterns of men and women will diminish.
85) In the past several decades, attitudes of both men and women have changed. Increased
participation in ________ has eliminated one of the most visible inequalities in opportunities for
women.
A) organized sports
B) graduate business (MBA) programs
C) fashion design programs
D) financial/investment banking jobs
E) medical professions
86) Over the past 30 years in the United States, the attitudes of men and women have changed.
One factor has been the
A) way women were portrayed in the movies and on television.
B) Internet, which made gender, race, and ethnicity invisible in the marketplace.
C) decreased participation of women in the workforce that has made employers less open-
minded.
D) failure of political activists to advocate the power of women.
E) economic shift that resulted in the courting of women to increase the overall gross domestic
product of the United States.
87) Changing attitudes toward sex roles are sometimes expressed today as ________ in both
product design and promotion.
A) traditional stereotypes
B) gender neutrality
C) data-driven specifications
D) post-modern norms
E) overt sexual themes
88) Which of the following is a commonly held value in the United States today?
A) individualism
B) tradition
C) group welfare
D) nostalgia
E) acceptance of birthright
89) All of the following are commonly held values in the United States except which?
A) equality
B) action
C) group welfare
D) continuous change
E) personal control
90) Which of the following is a commonly held value in the United States?
A) the importance of rank and status
B) the importance of tradition
C) belief in fate
D) competition
E) acceptance of birthright
91) An increasingly important value for consumers around the world is
A) self-esteem and fitness.
B) wealth and health.
C) patriotism and friendship.
D) family and fun.
E) sustainability and preservation of the environment.
92) Consumers are buying hybrid gas-electric automobiles such as the Toyota Prius. This is an
example of which increasingly common cultural value?
A) preserving the environment
B) paying the least amount possible for products
C) reducing inequality among competing brands
D) believing in fate
E) reducing cognitive dissonance
93) Many consumers are committed to brands with a strong link to social action. An example of
this would be
A) McDonald's "I'm Lovin' It" campaign.
B) Colgate's "Every Drop Counts" campaign.
C) Diesel's "Be Stupid" campaign.
D) Liz Claiborne's "Claiborne for Men" campaign.
E) Samsung's "The Jitterbug" campaign.
94) Walmart has set ambitious goals to cut energy use by buying more local products, reducing
packaging, and switching to renewable power in response to customers'
A) changing values.
B) changing population composition.
C) changing demographics.
D) changing regulatory forces.
E) changing ethnic composition.
95) Value consciousness is defined as
A) special deals to customers who shop for bargains online.
B) the concern for obtaining the best quality, features, and performance of a product or service
for a given price that drives consumption behavior.
C) a change in consumption orientation to strongly prefer inexpensive products.
D) strict budgeting of discretionary purchases.
E) money management for long-term stability.
96) The economy is defined as
A) the independent financial factors that are not affected by changes in government spending.
B) the purchase of the highest quality product for the lowest possible price.
C) the production, distribution, and consumption of products, services, and ideas by households.
D) the income, expenditures, and resources that affect the cost of running a business and
household.
E) the forces within a manufacturer's control that affect the demand and supply of its offerings.
97) All of the following are economic indicators except which?
A) inflation
B) barriers to entry
C) unemployment
D) GDP
E) deflation
98) A sudden drop in the average consumer income would be an example of which
environmental force?
A) economic
B) competitive
C) technological
D) social
E) regulatory
99) Oil prices have an impact on transportation costs for many types of products. Should oil
prices change, the price consumers pay for products is often adjusted accordingly. Changing oil
prices would be an example of a(n) ________ force.
A) social
B) economic
C) technological
D) competitive
E) regulatory
100) Volkswagen opened a large plant in Chattanooga, Tennessee, in 2011. Within a few years,
VW spurred more than 12,400 direct and indirect jobs in the area. The carmaker generates
income of over $600 million there annually and boosts state and local tax revenues by over $50
million a year. A huge expansion was announced in 2016 that would nearly double its operations
in Tennessee. This example best illustrates a(n) ________ change that has impacted the people
and businesses of Chattanooga.
A) social
B) regulatory
C) competitive
D) economic
E) technological
101) In a(n) ________ economy, the cost to produce and buy products and services escalates as
prices increase.
A) inflationary
B) expansionary
C) deflationary
D) recessionary
E) depressive
102) In a(n) ________ economy, if prices rise faster than consumer incomes, the number of
items consumers can buy decreases.
A) deflationary
B) expansionary
C) recessionary
D) inflationary
E) depressive
103) In an inflationary economy, the cost to produce and buy products and services ________ as
prices ________.
A) increases; increase
B) increases; decrease
C) decreases; increase
D) decreases; decrease
E) does not change; increase
104) The College Board reports that since 2000, college tuition and fees have increased by 160
percent while the share of family income required to pay for tuition at public four-year colleges
has risen from 5 percent in 2000 to 17 percent today. This is an example of a(n) ________
condition.
A) deflationary
B) recessionary
C) repressive
D) inflationary
E) depressive
105) A time of declining economic activity when businesses decrease production, unemployment
rises, and many consumers have less money to spend is referred to as
A) deflation.
B) inflation.
C) prosperity.
D) a recession.
E) a depression.
106) The most recent economic recession occurred when?
A) 1981–1982
B) 1989–1990
C) 1998–1999
D) 2007–2009
E) 2010–2013
107) Components of a consumer's income consist of
A) inflationary, recessionary, and depressive economies.
B) salaries, taxes, and assets.
C) gross, disposable, and discretionary components.
D) sales taxes, income taxes, and property taxes.
E) assets, liabilities, and equities.
108) The total amount of money made in one year by a person, household, or family unit is
referred to as ________ income.
A) government
B) discretionary
C) disposable
D) gross
E) livable
109) Gross income refers to
A) the money that remains after paying for taxes and necessities.
B) the money deducted from a person's paycheck to pay for federal, state, and local taxes.
C) the money a consumer has left after paying taxes to use for necessities such as food, shelter,
clothing, and transportation.
D) the total amount of money made by a single individual during his or her lifetime.
E) the total amount of money made in one year by a person, household, or family unit.
110) At the U.S. Census Bureau, gross income is referred to as
A) buying power.
B) cash inflow.
C) fiscal power.
D) money income.
E) household income.
111) In 1970, the typical U.S. household earned about $8,700. In 2015, the typical U.S.
household earned about $56,516. If adjusted for inflation, the gross income of the typical U.S.
household in 2015 relative to 1970 has
A) increased dramatically.
B) increased somewhat.
C) remained relatively stable.
D) decreased somewhat.
E) decreased dramatically.
112) Approximately what percentage of U.S. households has an annual income between $25,000
and $99,999?
A) 13
B) 28
C) 37
D) 42
E) 51
113) The money a consumer has left after paying taxes to use for necessities such as food,
shelter, clothing, and transportation is referred to as
A) net income.
B) disposable income.
C) discretionary income.
D) household income.
E) gross income.
114) Disposable income refers to
A) the money that remains before paying for taxes and necessities.
B) the money deducted from a person's paycheck to pay for federal, state, and local taxes.
C) the total amount of money made by a single individual during his or her lifetime.
D) the money a consumer has left after paying taxes to use for necessities such as food, shelter,
clothing, and transportation.
E) the money that is spent for necessities or charitable causes that is exempt from taxation.
115) If taxes rise at a faster rate than incomes, consumers will
A) have less disposable income and try to economize.
B) feel more confident in the government and therefore spend more money.
C) use cash for purchases such as a vacation.
D) recognize that it is the perfect opportunity to buy a car or other expensive products on credit.
E) react by voting for all incumbent members of Congress.
116) A decline in ________ often leads consumers to adjust their spending upwards in other
categories.
A) automobile repair prices
B) gasoline prices
C) interest rates
D) consumer confidence
E) property values
117) Changes in ________ have a psychological impact on consumers, who tend to spend more
when they feel their net worth is rising and postpone purchases when it declines.
A) automobile prices
B) fuel prices
C) the number of people competing for jobs
D) consumer confidence
E) home values
118) During a recessionary period, which of the following economic behaviors would be
expected?
A) Consumer spending would increase.
B) The use of credit would decline.
C) Taxes would increase nationally.
D) Property values would jump dramatically.
E) Consumers would use the majority of their discretionary income on entertainment.
119) Leah had an excellent year as a salesperson in 2017, earning $98,000. She paid $38,000 for
necessities such as mortgage, food, and clothing. Her state and federal income taxes totaled
$24,000. What was her disposable income?
A) $36,000
B) $74,000
C) $60,000
D) $98,000
E) There is not enough data provided to calculate her discretionary income.
