MKTG 3310 // CH 3 Practice Test

54) Which of the following American government agencies is charged with setting and enforcing pollution standards? A) the Environmental Protection Agency (EPA) B) the Federal Trade Commission (FTC) C) the Food and Drug Administration (FDA) D) the Consumer Product Safety Commission E) the Federal Energy Regulatory Commission

Answer: A Diff: 1 Page Ref: 80 Skill: Concept AACSB: Ethical Reasoning

44) Of the following diversity segments in the American population, which is currently the largest? A) adults with disabilities B) Hispanics C) African Americans D) telecommuters E) Asian Americans

Answer: A Diff: 2 Page Ref: 77 Skill: Concept AACSB: Multicultural and Diversity

47) A country with a(n) ________ economy has rich markets for many different kinds of goods. A) industrial B) service C) rural D) subsistence E) multicultural

Answer: A Diff: 2 Page Ref: 78 Skill: Concept

62) Business legislation has been created for three basic reasons: to protect companies from each other, to protect consumers, and to ________. A) protect the interests of society B) regulate prices C) increase world trade D) regulate monopolies E) promote environmental sustainability

Answer: A Diff: 2 Page Ref: 83 Skill: Concept AACSB: Ethical Reasoning

53) The natural resources that are needed as inputs by marketers or that are affected by marketing activities are referred to as the ________. A) raw material market B) natural environment C) endangered environment D) green movement E) factors of production

Answer: B Diff: 1 Page Ref: 80 Skill: Concept

60) Legislation affecting business around the world will continue to ________. A) become simplified B) increase C) stabilize D) decrease E) relax consumer protections

Answer: B Diff: 1 Page Ref: 83 Skill: Concept AACSB: Ethical Reasoning

36) An increasing number of American workers work out of their homes with technological conveniences such as PCs, high-speed Internet access, and fax machines. These workers are referred to as the ________ market. A) LOHAS B) SOHO C) Gen X D) Millennial E) micropolitan

Answer: B Diff: 2 Page Ref: 75 Skill: Concept

38) Over the past 50 years, which of the following groups of workers has become smaller? A) managers B) manufacturers C) professionals D) telecommuters E) married women

Answer: B Diff: 2 Page Ref: 76 Skill: Concept AACSB: Multicultural and Diversity

42) Because of an expected increase in ethnic populations, marketers are likely to place a greater emphasis on ________. A) geographic segmentation B) targeted advertising messages C) mass marketing D) mainstream advertising E) cause-related marketing

Answer: B Diff: 2 Page Ref: 76 Skill: Concept AACSB: Multicultural and Diversity

43) Members of which of the following groups are more likely than the general population to have professional jobs, own a vacation home, own a notebook computer, and own individual stocks? A) Gen Xers B) gays and lesbians C) Millennials D) echo boomers E) environmentalists

Answer: B Diff: 2 Page Ref: 77 Skill: Concept AACSB: Multicultural and Diversity

40) Which of the following is an accurate statement about the diversity of the American population? A) African Americans represent the largest non-white segment of the population. B) More than 12 percent of people living in the United States were born in another country. C) The Asian American percentage of the population is expected to remain steady in the next 50 years. D) In terms of ethnic diversity, the United States is about average in comparison to other countries with populations of a comparable size. E) American ethnic populations are expected to slowly increase in the next few decades.

Answer: B Diff: 3 Page Ref: 76 Skill: Concept AACSB: Multicultural and Diversity

49) Which of the following statements about income distribution in the United States is NOT true? A) In recent decades, the rich have gotten richer. B) In recent decades, the middle class has grown. C) In recent decades, the poor have remained poor. D) The top 10 percent of American earners account for almost half of all American income. E) The top one percent of American earners receive a higher percentage of the nation's total income than do the bottom 50 percent of American earners.

Answer: B Diff: 3 Page Ref: 79 Skill: Concept AACSB: Multicultural and Diversity

58) Marketers should be aware of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. This is the ________ environment. A) socio-legal B) cultural C) political D) legal-technological E) economic

Answer: C Diff: 1 Page Ref: 83 Skill: Concept AACSB: Ethical Reasoning

32) Americans are very mobile. Over the past two decades, the U.S. population has shifted most heavily toward the ________ states. A) Midwestern B) Northwestern C) Sunbelt D) Southeastern E) Northeastern

Answer: C Diff: 2 Page Ref: 75 Skill: Concept

37) Which of the following most accurately reflects the popularity of telecommuting? A) Almost all American businesses are expected to offer telecommuting options within the next decade. B) The majority of American businesses currently offer telecommuting programs for their employees. C) About 40% of American businesses currently offer telecommuting programs for their employees. D) About 25% of American businesses currently offer telecommuting programs for their employees. E) The percentage of American businesses offering telecommuting programs is expected to decline within the next decade.

Answer: C Diff: 2 Page Ref: 75 Skill: Concept

35) As more and more Americans are moving to "micropolitan areas," marketers can most reasonably assume that ________. A) geographic segmentation may be less critical B) rural populations will offer an expanding market C) micropolitan areas may offer the same advantages as metropolitan areas D) congested areas may become more ensnarled E) crime rates in metropolitan areas will increase

Answer: C Diff: 2 Page Ref: 75 Skill: Concept AACSB: Analytic Skills

39) Because of increasing ________, Americans will demand higher quality products, books, magazines, travel, personal computers, and Internet services. A) numbers of nontraditional families B) family size C) levels of education D) social class awareness E) ethnic diversity

Answer: C Diff: 2 Page Ref: 76 Skill: Concept AACSB: Multicultural and Diversity

41) Of the following, which is the fastest-growing group in the United States? A) African Americans B) Caucasians C) Hispanics D) Native Americans E) Arab Americans

Answer: C Diff: 2 Page Ref: 77 Skill: Concept AACSB: Multicultural and Diversity

51) Which of the following combinations of expenses use up most household income? A) food, housing, retirement planning B) housing, insurance, taxes C) food, housing, transportation D) housing, taxes, transportation E) food, travel, savings

Answer: C Diff: 2 Page Ref: 79 Skill: Concept

55) What movement has encouraged marketers to pursue environmentally sustainable strategies? A) the EPA B) the black market C) the green movement D) the SOHO movement E) green intervention

Answer: C Diff: 2 Page Ref: 80 Skill: Concept AACSB: Ethical Reasoning

57) Which of the following is a result of regulations set up by the Food and Drug Administration and the Consumer Product Safety Commission? A) The time lag between new product ideas and their introduction to the market has decreased. B) Spending on research and development has decreased. C) Research costs for companies have grown. D) More companies have failed to meet safety standards. E) Companies are more focused on making practical, affordable versions of products.

Answer: C Diff: 2 Page Ref: 82 Skill: Concept AACSB: Ethical Reasoning

45) The ________ environment consists of factors that affect consumer purchasing power and spending patterns. A) cultural B) political C) technological D) economic E) natural

Answer: D Diff: 1 Page Ref: 78 Skill: Concept

33) Which of the following geographical areas has NOT experienced a recent population increase? A) micropolitan areas B) suburbs C) the West D) the Northeast E) the South

Answer: D Diff: 2 Page Ref: 74 Skill: Concept

34) In the 1950's the American population began shifting from large cities to ________. A) farming communities B) rural areas C) foreign countries D) suburbs E) coastal towns

Answer: D Diff: 2 Page Ref: 75 Skill: Concept

46) A country with a(n) ________ economy consumes most of is own agricultural and industrial outputs and offers few market opportunities. A) industrial B) service C) technological D) subsistence E) developed

Answer: D Diff: 2 Page Ref: 78 Skill: Concept

48) Value marketing is the strategy of offering consumers ________. A) high quality at a high price B) luxury quality at a high price C) lesser quality at a low price D) reasonable quality at a fair price E) little quality at a low price

Answer: D Diff: 2 Page Ref: 79 Skill: Concept

50) In a tiered market, companies target which of the following? A) affluent consumers only B) consumers of modest means only C) the middle class only D) consumers at all levels of income distribution E) professionals only

Answer: D Diff: 2 Page Ref: 79 Skill: Concept

52) Ernst Engel's laws generally have been supported by recent studies. He discovered that as family income rises, the percentage spent on ________ declines and the percentage spent on ________ remains about constant. A) food; clothing B) clothing; recreation/entertainment C) savings; transportation D) food; housing E) recreation/entertainment; savings

Answer: D Diff: 2 Page Ref: 79-80 Skill: Concept

59) Even the most liberal advocates of free-market economies agree that the system works best with ________ regulation. A) private B) maximum C) intermittent D) at least some E) no

Answer: D Diff: 2 Page Ref: 83 Skill: Concept AACSB: Ethical Reasoning

61) The legislation created to limit the number of commercials aired during children's programming is called the ________. A) Children's Online Privacy Protection Act B) Child Protection Act C) Commercial Product Act D) Children's Television Act E) Consumer Product Safety Act

Answer: D Diff: 2 Page Ref: 84 Skill: Concept AACSB: Communication

56) Which country leads the world in research and development spending? A) England B) Germany C) Sweden D) Japan E) the United States

Answer: E Diff: 2 Page Ref: 82 Skill: Concept AACSB: Use of IT