Potter, Introduction to Media Literacy
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Chapter 4: Test Bank
1. About how much money does the average person in the United States spend on media each
year?
@ Section Location: Beginning of Chapter; Learning Objective: 1
a. $80
2. About how much time does the average person in the United States spend on media each
year?
@ Section Location: Beginning of Chapter; Learning Objective: 1
a. 35 hours
3. The most central rule to the economic game is that to play, you must
@ Section Location: The Media Game; Learning Objective: 1
4. The players in the media economic game include
@ Section Location: The Players; Learning Objective: 1
a. advertisers and media companies only.
5. According to the text, if we, as consumers, don’t play the media game well,
@ Section Location: The Players; Learning Objective: 1
a. we will get shortchanged on our expenditure of time.
6. The group of players who exchange time and money for media space and access to audiences
c. below-the-line employees.
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*d. advertisers.
7. Media businesses compete in the
@ Section Location: The Players; Learning Objective: 1
a. talent market.
8. In the mass media industries, talent is viewed primarily as
@ Section Location: The Players; Learning Objective: 1
9. For all types of players involved in the economic game that pertains to the media, the main
goal is to
@ Section Location: The Goal; Learning Objective: 1
a. engage in exchanges with all other groups of players.
10. Within the media economic game, the exchange value for media businesses, advertisers, and
media employees is measured
@ Section Location: The Goal; Learning Objective: 1
a. individually.
11. According to the text, what is the engine that drives the growth of media industries?
@ Section Location: Advertising Is the Engine; Learning Objective: 2
a. Consumers
12. In 2012, how much money was spent on all forms of advertising?
@ Section Location: Advertising Is the Engine; Learning Objective: 2
a. 500 million dollars
Potter, Introduction to Media Literacy
13. What proportion of advertising money is going to online advertising?
@ Section Location: Advertising Is the Engine; Learning Objective: 2
d. Around 5%
14. Why is advertising so important to our economy?
@ Section Location: Advertising Is the Engine; Learning Objective: 2
a. Because of the decline in the proportion of farmers and blue-collar workers
15. The three major strategies mass media businesses use to be successful are
d. None of the above
16. Profit has often been defined by specialists as the difference between company’s revenue and
@ Section Location: Maximizing Profits; Learning Objective: 3
a. price margins.
17. Which of the following are ways that media companies maximize profit?
@ Section Location: Maximizing Profits; Learning Objective: 3
18. After producing a movie, a film studio sells it on DVD, leases it to airline companies for
showing during flights, and sells artifacts related to it. These are ways to
@ Section Location: Maximizing Profits; Learning Objective: 3
d. minimize risk.
19. The media pay people with a lot of talent a lot of money and clerical staff as little as possible.
This is because media organizations try to
Potter, Introduction to Media Literacy
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@ Section Location: Maximizing Profits; Learning Objective: 3
a. increase revenue streams.
20. Below-the-line employees are those employees in media companies who
@ Section Location: Maximizing Profits; Learning Objective: 3
d. do not own a portion of the company.
21. A movie company spends a great deal of money producing a film. Once they finish
production, they spend a little extra money recording it on DVD and Blu-ray. This is an
example of
@ Section Location: Maximizing Profits; Learning Objective: 3
a. economies of scale.
22. One radio station transmits only rap music enjoyed by youth and another radio station
broadcasts only golden oldies enjoyed by elderly people. This is because these media
organizations attempt to
@ Section Location: Constructing Audiences; Learning Objective: 3
23. Once a media company constructs an audience, the next step is to
@ Section Location: Constructing Audiences; Learning Objective: 3
24. Today, media businesses do research first and product development second. This is
because these media businesses try to
@ Section Location: Reducing Risk; Learning Objective: 3
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25. With the marketing concept, managers
@ Section Location: Reducing Risk; Learning Objective: 3
a. identify niche audiences.
26. Media organizations develop sequels of successful shows as a way to
@ Section Location: Reducing Risk; Learning Objective: 3
a. be nice to actors.
27. The more you are thinking of your media expenditures and the value you are receiving in
return,
@ Section Location: Increasing Media Literacy; Learning Objective: 4
28. The benefits received from your exposure to media are typically the resources of
@ Section Location: Increasing Media Literacy; Learning Objective: 4
a. money and time.
29. If you get from the media more information and entertainment that you expect, you regard
yourself as which element of the economic game?
@ Section Location: Increasing Media Literacy; Learning Objective: 4
d. None of the above
30. In addition to asking yourself what are the benefits of your media exposure, to increase your
media literacy you also have to ask yourself
@ Section Location: Increasing Media Literacy; Learning Objective: 4
a. what are the benefits of your friends from media exposure.
31. The economic media game has a definite beginning and end.
Potter, Introduction to Media Literacy
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@ Section Location: The Media Game; Learning Objective: 1
32. There is a simple, uncomplicated interdependence among players in the media.
@ Section Location: The Players; Learning Objective: 1
33. If consumers pulled out of the economic media game, the game would collapse.
34. As individuals, we do not have the power to alter the economic media game significantly
for ourselves.
@ Section Location: The Players; Learning Objective: 1
35. Within the economic media game, value is computed in the same way for different players.
@ Section Location: The Goal; Learning Objective: 1
36. Advertising is the engine that drives the growth in the media industries.
@ Section Location: Advertising Is the Engine; Learning Objective: 2
37. When a media company becomes a conglomerate, it increases its revenue streams.
38. To minimize expenses, media companies pay above-the-line employees as little as
possible (near minimum wage).
39. The radio and magazine industries have been very successful in attracting people to a
niche audience.
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40. By conducting a cost-benefit analysis of your media exposure, you increase your media
literacy
41. List and describe the four types of players of the mass media economic game.
@ Section Location: The Players; Learning Objective: 1
42. Discuss the goal of the mass media economic game.
@ Section Location: The Goal; Learning Objective: 1
43. Discuss how advertising drives the growth of the media industries.
@ Section Location: Advertising Is the Engine; Learning Objective: 2
44. List and describe the three strategies media companies use to succeed in the economic game
and achieve their goals.
@ Section Location: Media Industries’ Strategies; Learning Objective: 3
45. Discuss how understanding the mass media economic game can help increase your media
literacy.
@ Section Location: Increasing Media Literacy; Learning Objective: 4