120) The portion of one’s income that remains after paying for taxes and necessities is referred to
as
A) net income.
B) discretionary income.
C) disposable income.
D) household income.
E) gross income.
121) Discretionary income refers to
A) the money deducted from a person’s paycheck to pay for federal, state, and local taxes.
B) the total amount of money made by a single individual during his or her lifetime.
C) the money a consumer has left after paying taxes to use for necessities such as food, shelter,
clothing, and transportation.
D) the money that is spent for necessities or charitable causes that is exempt from taxation.
E) the money that remains after paying for taxes and necessities.
122) Income used to buy luxury items such as a voyage aboard the Queen Mary 2 offered by
Cunard referred to as
A) gross income.
B) disposable income.
C) surplus income.
D) wealth income.
E) discretionary income.
123) The Department of Labor monitors consumer expenditures through its annual
A) Consumer Price Index.
B) Consumer Confidence Index.
C) Consumer Expenditure Survey.
D) Index of Consumer Sentiment.
E) National Consumer Spending Assessment.
124) The Department of Labor monitors consumer expenditures through its annual Consumer
Expenditure Survey. In the most recent report, consumers spent the largest proportion of their
income on which of these?
A) education
B) housing
C) vacations
D) entertainment
E) investments
125) Spending on which of the following would be considered discretionary?
A) food
B) housing
C) vacations
D) clothing
E) transportation
126) Increases in discretionary income can occur as a result of all of the following except which?
A) an increase in gross income
B) a decrease in taxes
C) an increase in disposable income
D) a decrease in housing costs
E) an increase in interest rates
127) Even if she pays high taxes and has high expenses for necessities, if a consumer’s ________
is still high after those, she may be able to take advantage of the luxurious vacation travel
opportunities like staying at the Ritz-Carlton in New York City’s Central Park.
A) savings rate
B) gross income
C) taxes
D) discretionary income
E) disposable income
128) Kelly had an excellent year as a junior auditor in 2017, earning $97,000. She paid $37,000
for necessities such as mortgage, food, and clothing. Her state and federal income taxes totaled
$24,000. What was her discretionary income?
A) $36,000
B) $60,000
C) $73,000
D) $97,000
E) Not enough information is provided to calculate her discretionary income.
129) A local pet supplies boutique had a good year with rising revenues and reduced operating
costs resulting in personal income for the owner of nearly $100,000. One-third of that went to
local, state, and federal income taxes and another third went to pay for a home mortgage, car
payments, food, clothing, and other necessities. What is the remaining third called?
A) gross income
B) bonus income
C) discretionary income
D) disposable income
E) profit
130) Leigh and Rob prepared a household budget in an attempt to manage their money better.
They prepared the following list: Monthly income (after taxes) = $4,500; Monthly expenses
(necessities), which include rent, $550; auto loan, $250; student loan, $200; savings, $500; food,
$200 = $1,700; Amount left over = $2,800 (income less necessary expenses). The remaining
$2,800 is their
A) gross income.
B) personal income.
C) disposable income.
D) discretionary income.
E) profit.
131) Recently, the number of people who attended music concerts, plays, and other live
entertainment increased because they had the ________ to enjoy these activities.
A) gross income
B) bonus income
C) profit
D) disposable income
E) discretionary income
132) This year the Shafer family has dined at nice restaurants almost four times a week. Between
raises received by Mr. and Mrs. Shafer, their family income rose 11 percent, while the cost of
living rose by 4 percent and property taxes went up 5 percent in their community. As a result, the
family eats outside the home more often now, compared to dining out only a few times a month a
few years ago. This reflects
A) an increase in the number of fine restaurants during times of economic upswing.
B) a reaction to an increase in discretionary income.
C) a significant drop in disposable income since there was a negative gain in income.
D) a rise in deflation.
E) a shift from investing to spending
133) Recent data on consumer expenditures indicate that the savings rate of U.S. consumers has
A) declined to 13 percent.
B) remained flat at 0.5 percent.
C) fluctuated minimally around 2 percent.
D) risen to 5.5 percent.
E) exploded to nearly 10 percent.
134) Inventions or innovations from applied science or engineering research are referred to as
A) scientific discoveries.
B) theoretical development.
C) technology.
D) patents.
E) dynamic engineering.
135) Technology is defined as
A) any device or process based on scientific discoveries that are less than one year old.
B) any mechanical device used in the production or distribution of a product.
C) scientific findings that are used now or are able to generate a profit.
D) ideas or concepts that will one day be translated into usable devices, mechanisms, or
processes.
E) the inventions or innovations from applied science or engineering research.
136) Technological advances can replace or substitute for existing products in a relatively short
period. IBM’s Watson is a likely replacement or substitute for
A) TV broadcasts.
B) digital video recorders.
C) a customer service representative.
D) printed publications.
E) plastic credit cards.
137) According to the text, several new technologies are expected to have dramatic impacts on
marketing. Among those cited are
A) biotechnology, smart grid services, natural user interfaces, and social networks.
B) neuron technology, lithium batteries, cloud computing, and wireless power.
C) crowdsourcing, genomics, QR codes, and weather manipulation.
D) the Internet of Things, autonomous vehicles, wearable technology, and artificial intelligence.
E) nanotechnology, autobots, cloud computing, and electric cars.
138) Oral-B toothbrushes now connect to your smartphone to provide real-time feedback on your
brushing. This is an example of how ________ forces help improve or replace existing products
and companies.
A) ecological
B) regulatory
C) legal
D) competitive
E) technological
139) Medication sensors have been developed that can dispense medicines by circulating within
the arteries of the body and sensing when the medication is needed. This is an example of how
________ forces help improve or replace existing products and companies.
A) ecological
B) regulatory
C) technological
D) competitive
E) marketing mix
140) Recently, ink has been developed that will conduct electricity. The application for this ink
is to print circuitry that can be read electronically. This may help to drive down the cost of radio
frequency (RFID) tags that are currently used in industry. This is an example of how ________
forces are applied to industry.
A) ecological
B) regulatory
C) technological
D) competitive
E) marketing mix
141) One reason some people don’t like to buy clothing from Internet retailers is the inability to
know if the ordered clothes will fit. ImageTwin has developed a scanning system that obtains the
measurements of individuals, which are then fed into a database. When you want to buy
something at LandsEnd.com, you can see a 3-D image of what the item should look like on your
body. This is an example of the ________ force in the marketing environment.
A) economic
B) technological
C) sociocultural
D) competitive
E) marketing mix
142) Cloud computing, such as Apple’s iCloud, enables businesses and consumers to share data
or use software applications directly from a remote server over the Internet or wirelessly rather
than having that data file or program reside on a personal computer. This is an example of a
________ change in the marketing environment.
A) regulatory
B) sociocultural
C) competitive
D) technological
E) marketing mix
143) According to the text, ________ recently introduced a “connected” refrigerator that can
track food expiration dates and respond to voice commands.
A) Google
B) Samsung
C) LG
D) Jenn Air
E) KitchenAid
144) Growth of green technologies such as smart grid electricity services, online energy
management, and consumer-generated energy are ________ forces that would be identified
through an environmental scan.
A) social
B) competitive
C) regulatory
D) technological
E) economic
145) The Electronic Signatures in Global and National Commerce Act makes digital signatures
as valid as pen-and-ink signatures. This act created a demand for software and hardware that
would collect, transmit, and receive digital signatures. This example indicates how ________
forces can work together in the marketing environment.
A) technological and regulatory
B) technological and competitive
C) social and competitive
D) social and economic
E) regulatory and economic
146) Marketspace refers to
A) the two-way buyer-seller electronic communication in a computer-mediated environment in
which the buyer controls the kind and amount of information received from the seller.
B) websites that allow people to congregate online and exchange views on topics of common
interest.
C) Internet search engines used for the purpose of data mining.
D) an information- and communication-based electronic exchange environment occupied by
sophisticated computer and telecommunication technologies and digital offerings.
E) the blending of different communication and delivery channels that are mutually reinforcing
in attracting, retaining, and building relationships with consumers who shop and buy in
traditional intermediaries and online.
147) An information- and communication-based electronic exchange environment mostly
occupied by sophisticated computer and telecommunications technologies and digital offerings is
referred to as
A) Internet marketing.
B) marketspace.
C) electronic commerce.
D) marketplace.
E) e-exchange.
148) Any activity that uses electronic communication in the inventory, promotion, distribution,
purchase, and exchange of products and services is referred to as
A) electronic commerce.
B) internet barter.
C) intranet exchange.
D) electronic exchange.
E) extranet trade.
149) Electronic commerce refers to
A) an information- and communication-based electronic exchange environment mostly occupied
by sophisticated computer and telecommunications technologies and digitized offerings.
B) any activity that uses electronic communication in the inventory, promotion, distribution,
purchase, and exchange of products and services.
C) two-way buyer-seller electronic communication in a computer-mediated environment in
which the buyer controls the kind and amount of information received from the seller.
D) electronic storefronts that focus on converting an online browser into an online, catalog, or in-
store buyer.
E) electronic storefronts that advertise and promote a company’s products and services and
provide information on how items can be used and where they can be purchased.
150) Buying a book at www.amazon.com to give as a birthday present is an example of a(n)
________ transaction.
A) i-market
B) intranet
C) electronic commerce
D) extranet
E) marketplace
151) The Internet of Things (IoT) refers to
A) technological breakthroughs that allow major innovation to occur.
B) the network of products with connectivity-enabled electronics.
C) an explosion in interest in advanced analytics.
D) technological specifications that identify access to networks.
E) the belief in technology as a driver of success in the marketplace.
152) The network of products embedded with connectivity-enabled electronics has come to be
known as
A) marketspace.
B) the extranet.
C) the Internet of Things.
D) the cloud.
E) universal connection.
153) Alternative firms that could provide a product to satisfy a specific market’s needs are
referred to as
A) substitute firms.
B) target markets.
C) complementary firms.
D) cross product marketers.
E) competition.
154) Competition refers to
A) identical products that perform identical functions.
B) any for-profit organization that targets the customers of other organizations.
C) alternative firms that could provide a product to satisfy a specific market’s needs.
D) any product or service that vies for a portion of a customer’s discretionary income.
E) the set of firms that operate in a given geographic region, regardless of product or service.
155) In business, the four basic forms of competition are
A) pure competition, limited competition, oligopoly, and monopoly.
B) dictatorship, monarchy, oligarchy, and democracy.
C) pure competition, cross-market competition, oligopoly, and pure monopoly.
D) technological competition, market competition, governmental competition, and
environmental competition.
E) pure competition, monopolistic competition, oligopoly, and pure monopoly.
156) Many firms now use e-mail and the Internet to promote their products instead of sending
promotional literature to current and prospective customers through the mail. UPS and FedEx
continue to grow, offering both overnight and ground package delivery services. As a result, the
U.S. Postal Service (USPS) has lost millions of customers and billions in revenue. The USPS has
challenges ahead in coping with ________ forces in the marketplace.
A) economic
B) competitive
C) legal
D) social
E) technological
157) The form of competition in which there are many sellers and they each have a similar
product is referred to as
A) pure competition.
B) singular competition.
C) an oligopoly.
D) monopolistic competition.
E) a monopoly.
158) Agribusinesses that sell commodity products such as wheat, rice, and corn are often in a(n)
________ position with their competitors.
A) limited competition
B) pure competition
C) oligopolistic competition
D) monopolistic competition
E) monopolistic
159) ________ is the form of competition where distribution is the only element of the
marketing mix that exerts much of an impact on the firm.
A) Cross-market competition
B) Limited competition
C) Pure competition
D) Monopolistic competition
E) A monopoly