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Croteau, Media/Society, 6e
SAGE Publishing, 2019
Chapter 3: The Economics of the Media Industry
Test Bank
Multiple Choice
1. Modern media companies do not provide ______.
A. the media that we watch, read, and listen to
B. the services that display and help us find content
C. the products that we consume media through
D. the conduits by which we access media content
2. When an individual scrolls through Hulu to find the film that they want to watch, they
are using ______.
A. a product
B. a platform
C. the industry
D. the brand
3. If an individual wanted to invest into the “pipes” of the media companies, they would
put their money into ______.
A. Verizon
B. Google
C. Facebook
D. Spotify
4. The films that we watch on Netflix are ______ from media companies.
A. platforms
B. provisions
C. products
D. components
5. Facebook and Google display content that ______.
A. is created by the companies themselves
B. is created by their users
C. deliberately attract more users
D. is paid for by users
Croteau, Media/Society, 6e
SAGE Publishing, 2019
Ans: B
Answer Location: Platforms
6. A telephone line providing DSL Internet access is an example of a ______ from a
modern media company.
A. product
B. service
C. pipe
D. connection
7. The media companies that we are familiar with are ______.
A. most often individually controlled companies
B. all part of one very large company
C. mostly owned by a few very large companies
D. owned and controlled by the users
8. The “Big Three” music companies that own most of the smaller labels are ______.
A. Worldwide Music, US Records, and Columbia Music Group
B. Sony Music, Warner Music Group, and Universal Music Group
C. LLRP Records, Western Record Group, and Capitol Music
D. Greenfield Recordings, Bushfire Music Group, and Independent Music Group
9. Formerly known as Clear Channel Communications, ______ is the leading radio
company in the United States.
A. CCD
B. RadioShack
C. iHeartMedia
D. Media Connections
10. Netflix, Hulu, and Amazon are all ______ which have dramatically changed the way
users view television.
A. programming
B. television corporations
C. products
D. streaming services
11. ______ and ______ are the leading U.S. mobile network companies.
A. Comcast; AT&T
B. T-Mobile; Verizon
C. T-Mobile; AT&T
D. Verizon; AT&T
12. Steve owns a book publishing company and he has recently purchased a paper mill.
This is an example of his company ______.
A. integrating horizontally
B. conglomerating
C. integrating vertically
D. expanding
13. When a media company purchases other similar media companies, said company is
______.
A. integrating vertically
B. expanding
C. conglomerating
D. integrating horizontally
14. Disney owning Lucas Films, 20th Century Fox, Marvel, Pixar, and ESPN is an
example of ______.
A. horizontal integration
B. a monopoly
C. vertical integration
D. cross-media integration
15. Warner Music Group owning Fueled by Ramen, Warner Bros. Records, and Atlantic
Records is an example of ______.
A. music domination
B. horizontal integration
C. vertical integration
D. instrumental integration
16. Facebook, Twitter, and YouTube are not considered traditional media companies
because ______.
Croteau, Media/Society, 6e
SAGE Publishing, 2019
A. are too ahead of other media companies they
B. do not hire media producers, therefore they do not produce media content
C. often provide misleading information to consumers
D. are not concentrated
17. Roughly 45% of adults in the United States get their news from ______.
A. YouTube
B. the Huffington Post
C. Facebook
D. newspapers
18. Content such as sensational headlines and top-10 lists are considered ______,
which result from media producers creating content that attracts the attention of social
media users.
A. clickbait
B. quick content
C. easy reading
D. scam articles
19. Traditional national news organizations ______.
A. have not changed how they reach consumers
B. have begun publishing news in a way that caters to the expectations of social media
users
C. use clickbait
D. changed how they approach news specifically, so a younger generation will be up to
date and educated
20. Online advertisement has now overtaken ______ as the world’s largest advertising
medium.
A. billboards
B. television
C. radio
D. magazine
21. Network news programs, still expected to make a profit in despite having most of
their advertisers move to the Internet and the fierce competition from cable news
channels, have started ______ to attract consumers.
A. broadcasting more
B. advertising their own news programs in the Internet
C. incorporating entertainment, human interest, and celebrities
D. more airy stories
22. Silvio Berlusconi, elected prime minister of Italy 3 times, achieved his position by
______.
A. owning television and radio outlets and utilizing his position to change the media in
his favor
B. allowing the media to portray him however they chose
C. demanding the citizens elect him
D. being an outstanding individual
23. Which of the following is an example of control of the media having an impact on
what content media users consumed?
A. a prime minister altering freedom of the press to only being partially free
B. a supporter of a political party donating large sums of money to the purchase of a
magazine company
C. lack of portrayal of LBGTQ in prime-time television
D. all of these
24. While the Internet provides opportunity for alternative media outlets, they often are
not successful because ______.
A. users are too focused on mainstream media to pay attention to alternative sources
B. there isn’t enough budget to continuously pay staff to produce substantial content
C. they do not have enough advertisement investors to create any revenue
D. the stories that they produce are not interesting to consumers
25. The degree to which there is diversity in media content readily available to
audiences, such as presence of different voices, different political views, and a variety
of cultures is called ______.
A. content availability
B. media presence
C. accessibility
D. media pluralism
Croteau, Media/Society, 6e
SAGE Publishing, 2019
26. Bagdikian’s hypothesis that absence of competition in the media industry will likely
lead to ______ is plausible.
A. more freedom for producers
B. homogenous media products
C. increased consumption
D. more diverse companies
27. Peterson and Berger’s analysis of the postwar music industry, they argue that high
market concentration leads to homogeneity, while a competitive market leads to
______.
A. dissimilarity
B. diversity
C. lack of content
D. ownership
28. From the few amount of shows that make it onto a television network, only a handful
of them get renewed and get to continue. The reason for this is ______.
A. they are too elaborate for the network to justify production
B. the story lines set up in the first season of the series isn’t complex enough to justify a
renewal
C. that not many of the shows that get scheduled gather enough audience for the
company to make enough money through advertisement to generate a profit
D. the network made the money they needed to during the first season of the series
29. When networks have hit television series, they often will ______.
A. change the concepts to not bore audiences
B. sell the series to a bigger company for a huge price
C. create copies and spin-offs
D. none of these
30. Networks have been leaning toward producing less expensive programs that do not
have huge budgets or expensive actors because of ______ and ______.
A. declining audiences; decline in advertising revenue
B. more demand for low-budget programs; easier access to studios
Croteau, Media/Society, 6e
SAGE Publishing, 2019
C. the cult following that low-budget programs tend to draw; they can produce more
shows
D. declining advertisement revenue; less stockholders
31. News outlets increase their profit margin in today’s modern media world by cutting
costs, often ______.
A. decreasing the number of journalists they have on staff
B. focusing on preplanned events instead of random events
C. cutting back on long-term investigative reporting
D. all of these
32. When advertises write their products into the story line of a film, television series, or
video game for characters to naturally utilize as a more subtle way of guaranteeing
reaching audiences, they are practicing ______.
A. clever advertisement
B. media advertisement
C. product placement
D. placement strategy
33. In the early 19th century, the more mainstream British press started gaining profit
from utilizing advertisement, but the more radical British press did not receive support
from advertisers, which is believed to be the reason ______.
A. the British radical press declined
B. the British radical press increased
C. audiences became more interested in radical papers
D. the working class stopped newspapers with advertisements
34. Advertisers are the dominant source of revenue for ______.
A. print news
B. broadcast news
C. online news
D. all of these
35. Local newspapers that get their advertisement support from primarily local
businesses ______.
Croteau, Media/Society, 6e
SAGE Publishing, 2019
A. do not allow their reporters much freedom to write stories that are not light and
industry pleasing
B. have the freedom to write whatever they want, as their supporters are their neighbors
C. make the most profit
D. have the highest success rates
1. Modern media companies provide three services to consumers that do not associate
with one another.
2. Platforms like Facebook and Google provide advertisers with viewers, which prompts
viewers to become consumers of said products.
3. The “pipes” component of modern media companies is often overlooked but is a vital
aspect.
4. Companies that provide us with the metaphorical pipes that transfer our media
experiences do not have any power over media producers and media consumers.
5. Most of the media companies we are familiar with are owned by a few much larger
companies. Example: Verizon owning Yahoo!
6. The older giant media companies have begun using consolidation of companies
owned as a business strategy.
7. Majority of music revenue in 2017 came from sale of physical products like CD’s and
vinyl.
8. A company simply growing larger is a guarantee for success.
Croteau, Media/Society, 6e
SAGE Publishing, 2019
9. In the current media economy, the different pipes and platforms through which people
access content is just as important as the content they are consuming.
10. While we as consumers seemingly have access to endless media outlets, the
companies that run these outlets are often consolidating companies to ensure profit.
11. Being considered “shareworthy” is now a goal for most all media producers,
including journalism.
12. Google and Facebook do not have significant impact on the advertisement industry.
13. Facebook and Google heavily invest in Internet infrastructure such as undersea
cables and high atmosphere balloons.
14. It is uncommon that people in power will abuse their power of media outlets to
achieve what they want.
15. Concentrated corporate media ownership is more than just excluding certain ideas,
it also successfully has moved out of being viewed as a corporate voice but is often
viewed as “our” view or the American view.
16. Original series created by streaming services have an advantage to being renewed
for another season because they cannot monitor viewers since the audience does not
all watch at the same time.
17. The cost to produce quality television programs has decreased due to less
advertisement revenue.
Croteau, Media/Society, 6e
SAGE Publishing, 2019
18. Advertisers view product placement and brand integration as smart investments as
they are hard for audiences to avoid.
19. News outlets tend to lean toward more airy stories and less controversial topics to
ensure the most viewers so that advertisers will support their program, which has
changed the meaning of news for both producers and consumers.
20. The impact of economic forces on media production and distribution is incredibly
significant and should not be ignored.
