Archives: Quiz

The lighting in Jake’s Steak Restaurant is muted. The chairs are covered in leather and solid enough to last a lifetime, and each table is covered with a white linen cloth. The colors are limited to earth tones with an […]

Accounts payable and accounts receivable are both examples of ________. A. financial statements B. copy tests C. CRM metrics D. marketing metrics E. data analytics By definition, a(n) ________ is a community, nation, or group that shares common traditions, institutions, […]

Intensive distribution seeks many outlets in a market, while selective distribution seeks only one outlet in a given market area. In the 1950s concept of the 12 categories of a marketing mix, ________ included decisions about which products to offer […]

A product that falls below the fair value zone of a value map is perceived to deliver benefits that are ________ the product’s cost. A. greater than B. less than C. equal to D. unrelated to E. diminished by A […]

A company faces fixed costs of $100,000 and variable costs of $8.00/unit. They plan to directly sell their product to the market for $12.00. How many units must they produce and sell to break even? A. 20,000 B. 25,000 C. […]

One purpose of ________ research is to gather preliminary information that will help divide a broad research problem into smaller problems for subsequent research. A. exploratory B. causal C. explanatory D. primary E. scaled A SWOT analysis would most likely […]

A company is most likely to see increased customer loyalty by practicing which step of the CRM process? A. customer identification B. customer authorization C. customer differentiation D. customer retention E. customization Which of the following is a benefit a […]

All of the following are stages in the PLC EXCEPT ________. A. introduction B. growth C. maturity D. adoption E. decline Costs that are directly attributable to the production of a product or delivery of a service are referred to […]

An advertisement that is scheduled to run three times during the network television broadcast of a college football game with an expected reach rating of 4.0 among men 18-24 would have a GRP of ________. A. 3 B. 4 C. […]

The growth-market matrix developed by the Boston Consulting Group (BCG) is used to conduct a ________. A. SWOT analysis B. portfolio analysis C. promotion strategy D. scorecard assessment E. business mission assessment The optimal method for setting a media budget […]

After calculating the CLV of its customers, American Auto Supplies identified its most profitable customers and also found that a significant percentage of its customers are unprofitable. Which of the following actions would American Auto Supplies most likely take based […]

Henry Ford’s philosophy was to improve the efficiencies of assembling each Model-T automobile so that its cost could be reduced further for increased consumer affordability. This reflects the ________ orientation. A) marketing B) production C) sales D) consumer E) relationship […]

Clean-Eaze, a producer of home cleaning products, has designed a new label for its window cleaner. Under the original 12 categories of marketing variables, Clean-Eaze has adjusted its promotions. Goods that are cross-docked are warehoused, but the warehouse does not […]

Automobiles, haircuts, tutoring, and lighting fixtures are all examples of tangible products. Personal selling can take place in a business or nonbusiness environment. Answer: TRUE Both financial and nonfinancial goals are included in the company description, purpose, and goals section […]

Exploratory research is also known as causal research. People within the same demographic group typically also share psychographic characteristics. Answer: FALSE For customers with strong credit ratings, Jen’s furniture store offers a credit line with no interest for six months […]

A media flowchart contains the same basic information as a media plan in a more visual form. Consumers seldom make purchase decisions based solely on psychographics. Answer: TRUE The PLC represents the common pattern of evolution of sales and profits […]

A loyal customer is, by definition, the most profitable kind of customer. Brands are less important in the business-to-business environment than in the business-to-consumer environment. Answer: FALSE A company may have multiple business plans for its product portfolio. Answer: TRUE […]

BRIC countries accounted for more than one-third of world economic growth in the most recent decade. The majority of consumers listen to and follow the product opinions of their friends and family members. Answer: TRUE A company in the process […]

A strong brand that suspends advertising for several months will find that the majority of consumers quickly lose memory of the brand. A company that wants to market its new clothing line to running enthusiasts is a co-sponsor of a […]

Sales contests are an example of consumer sales promotion. Durable goods are also known as soft goods. Answer: FALSE External marketing participants are not considered marketing stakeholders. Answer: FALSE Marathon runners are an example of a subculture. Answer: Answer: FALSE […]

In the BCG matrix, question marks are in a sector with little potential for growth. In most cases, two or more communication tools are used to reach a target audience. Answer: TRUE A luxury marketer must balance the need to […]

For the majority of consumers, the purchase of a breakfast cereal is a low-involvement choice. A test market has a profile similar to that of the control market, but it does not receive any special treatment. Answer: FALSE Marketers of […]

If the real interest rate in the United States increases, foreign investors will ________ their demand for U.S. dollars because they desire to ________ more U.S. financial assets. A) increase; buy B) increase; sell C) decrease; buy D) decrease; sell […]

Factors of production are usually divided into all of the following categories except A) labor. B) capital. C) interest. D) natural resources. Figure 9.1 Refer to Figure 9.1. Assume the economy is initially at point A. The initial change from […]

Your loss from an increase in interest rates is ________, and your gain from a decrease in interest rates is ________, if you hold a two-year bond compared to holding a one-year bond. A) greater; greater B) greater; less C) […]

As people’s incomes rise, they tend to purchase relatively less ________ and relatively more ________. A) durable goods; nondurable goods B) nondurable goods; services C) services; durable goods D) services; nondurable goods In the United States from 1949 to 2010, […]

The increased stability of the financial system in the United States since 1950 can help explain A) why the United States has only experienced one recession since 1950. B) the severity of the 2007-2009 recession. C) the increase in the […]

Fiat money has A) little to no intrinsic value but is backed by the quantity of gold held by the central bank. B) great intrinsic value because it can be exchanged for gold at the central bank. C) little to […]

Countries that have experienced sustained increases in their standard of living have achieved them because of A) higher rates of saving and investment. B) higher rates of population growth. C) sustained technological change. D) All of the above are correct. […]

Samantha’s wealth is $100,000, she expects to work for another 30 years at a constant salary of $200,000 and live for another 50 years. Assume taxes are zero and that Samantha completely smooths consumption over her lifetime. Calculate the following: […]

Suppose you purchase a two-year bond that has a $450 coupon and a face value of $5,000, and immediately after you purchase the bond, new bonds are issued that are otherwise identical, except they have coupons of $375. If you […]

A decrease in the price level will shift the money demand curve to the ________, causing the nominal interest rate to ________. A) right; increase B) right; decrease C) left; increase D) left; decrease Suppose the economy is initially in […]

The increase in the federal deficit due to the 2009 stimulus package may have had a smaller impact on the economy due to forward-looking households and firms A) reducing consumption and investment expenditures in anticipation of future tax increases. B) […]

If the currency to deposit ratio decreases and the monetary base is unchanged, the value of the money multiplier will ________ and the value of the money supply will ________ A) decline; decline B) decline; increase C) increase; decline D) […]

Real GDP is the value of goods and services A) adjusted only for unanticipated inflation. B) adjusted only for anticipated inflation. C) using base-year prices. D) using current-year prices. Suppose for every dollar change in household wealth, consumption expenditures change […]

When deciding whether the economy has entered an economic recession, the NBER’s Business Cycle Dating Committee examines and compares the behavior of various measures of broad activity. The measures the committee focuses on include all of the following except A) […]

The government’s profit from issuing fiat money is known as A) seigniorage. B) menu costs. C) commodity profit. D) tax distortions. C = $40 million + 0.6(1 – 0.2)Y I = $35 million G = $31 million NX = -$6 […]

In general, if the Fed increases its target for the federal funds rate, A) short-term nominal interest rates will increase and long-term nominal interest rates will not change. B) short-term nominal interest rates will not change and long-term nominal interest […]

The level of investment necessary to keep the capital-labor ratio constant is called A) capital investment. B) break-even investment. C) depreciated investment. D) diluted investment. If a household is credit rationed, the MPC out of current disposable income is ________ […]

If a government chooses to finance a budget deficit by borrowing and the expected inflation rate does not change, this will cause the real interest rate to ________ and the nominal interest rate to ________. A) increase; increase B) increase; […]

Historically, U.S. federal expenditures have ________ as a percentage of GDP. A) remained fairly stable B) increased dramatically C) slowly declined D) been extremely volatile All of the following are examples of financial securities except A) checking accounts. B) corporate […]

A credit-rationed household is more likely to immediately ________ of a one-time tax rebate than is a household that is not credit rationed. A) spend a larger portion B) spend a smaller portion C) save a larger portion D) spend […]

Assume that seigniorage and the government’s primary deficit are both zero. If the real interest rate is greater than the growth rate of real GDP, the debt-to-GDP ratio A) will increase. B) will decrease. C) will either decrease or not […]

Figure 4.4 Suppose the world consists of two large open economies, the United States and the rest of the world. The figures above represent loanable funds graphs for these two economies. Refer to Figure 4.4. At an interest rate of […]

According to the quantity theory of money, the inflation rate equals A) money supply minus real GDP. B) the growth rate of the money supply minus the growth rate of real GDP. C) real GDP minus the money supply. D) […]

Which of the following explains why purchasing power parity may not hold perfectly in the long run? A) Most countries have free markets with limited government regulation. B) Consumer preferences for goods and services across countries are very similar. C) […]

The aggregate production function is an equation that shows the relationship between ________ and ________. A) the inputs employed by firms; the maximum output firms can produce with those inputs B) the inputs employed by an individual firm in an […]

If bananas were used as money, which of the following functions of money would be the hardest for bananas to satisfy? A) unit of account B) store of value C) divisibility D) medium of exchange Targeting the federal funds rate […]

The real interest rate can be thought of as A) the price of current consumption relative to future consumption. B) the price of current consumption completely smoothed over a lifetime. C) the price of future consumption smoothed completely over a […]

A decrease in the real interest rate in the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies. A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate […]