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Questions
Q:
What is true of the newspaper industry?
A) In many countries, newspapers hardly have any trouble achieving complete market coverage.
B) Most U.S. cities have three or four major daily newspapers.
C) In many countries, there is a time lag before advertisements can be run in a newspaper.
D) Since there is an indication that the space for advertising is paid for, it is easy to tell exactly how much advertising appears in a given newspaper.
E) Japan has more than 15 national daily newspapers, but the circulation numbers are low.
Q:
The additional revenue a firm obtains when it hires an additional worker (holding other inputs constant) is theA) marginal revenue product (MRP) of labor. B) total factor cost (TFC) per worker.C) general rule for hiring.D) marginal physical product (MPP) of labor.
Q:
Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in
A) Internet forums.
B) personal selling initiatives.
C) radio and television broadcasting.
D) trade shows and exhibitions.
E) direct selling and sales promotions.
Q:
According to the theory of regulation, regulators must take into account the preferences of legislators, consumers, and producers.A) capture B) general interestC) public interest D) share-the-gains, share-the-pains
Q:
An ordinary annuity refers to a series of equal payments made or received at the end of each period.
Q:
________ is especially important when an advertising budget is small, where there are severe production limitations, or where there are low literacy rates.
A) Class distinction
B) Politicization
C) Standardization
D) Creativity
E) Following a formula
Q:
In an industry with network effects and differentiated products, it is possible for the industry to become an oligopoly ifA) they engage in a zero -sum game. B) they use a price-leadership model.C) they use a kinked demand curve model.D) a few firms reap most of the sales gains resulting from positive market feedback.
Q:
The only way to avoid linguistic problems in advertising communication is by
A) creating an entirely new advertisement for the new market.
B) using only English in all media promotions.
C) developing a new version of the product for the new market.
D) performing in-country testing with the target consumer group.
E) using facial expressions and physical gestures in the advertisement.
Q:
The present value of an annuity table can be used to determine the series of equal payments that are required by a loan agreement.
Q:
Information products (e.g., software)
A) have relatively high fixed costs but low marginal and average variable costs.
B) have relatively low fixed costs but high marginal and average variable costs.
C) have relatively high fixed costs and relatively high marginal and average variable costs.
D) have relatively low fixed costs and relatively low marginal and average variable costs.
Q:
Advertising ________ in some countries can distort media choice by changing the cost ratios of various media.
A) taxation
B) language
C) demographics
D) cultural focus
E) channels
Q:
An annuity is a series of equal payments.
Q:
Monopolistic competitors advertise becauseA) they have downward sloping demand curves.B) the demand curves they face are very elastic.C) they produce goods that can be differentiated from the goods of other firms in the industry.D) they can earn long-run profits if they advertise.
Q:
Companies that rely on television infomercials and television shopping are restricted by the limitations placed on the ________ of television commercials permitted when their programs are classified as advertisements.
A) length and number
B) religious content
C) subliminal messaging
D) cost
E) ethnic focus
Q:
The profit-maximizing price and quantity established by the unregulated monopolist in the above figure areA) Q1 units of output and a price of P5. B) Q3 units of output and a price of P3. C) Q1 units of output and a price of P1. D) Q4 units of output and a price of P4.
Q:
What is especially vulnerable as EU member states decide which area of regulation should apply to these services?
A) newspaper advertising
B) radio advertising
C) outdoor services
D) personal selling
E) Internet services
Q:
Refer to the above figure. Which panel represents the long-run supply curve for a constant cost industry?A) Panel A. B) Panel B. C) Panel C. D) Panel D.
Q:
What is an example of comparative advertising?
A) an ad using a scantily clad model to promote a soft drink
B) an ad showing a celebrity smoking his preferred brand of cigarettes
C) an ad showing a dog choosing one brand of dog food over another brand
D) an ad showing the superiority of synthetic materials used in its products as compared to cotton
E) an ad using shocking or taboo material to promote a product
Q:
The number of periods in a future value calculation can only be expressed in years.
Q:
The price per unit times the total quantity sold isA) average revenue. B) marginal revenue.C) total revenue. D) price revenue.
Q:
Which statement about advertising laws is correct?
A) Advertising of pharmaceuticals is unrestricted in most countries.
B) Toy, tobacco, and liquor advertising is restricted in numerous countries.
C) Advertising on television is unregulated in most countries.
D) The Internet is the only medium where no restrictions exist in any country.
E) Television ads are exempted from tax in all countries.
Q:
Future value can be found if the interest rate (i), the number of periods (n), and the present value (p) are known.
Q:
The marginal cost curve intersectsA) the average fixed cost curve at its minimum. B) the average total cost curve at its maximum.C) the minimum of the average fixed cost, average variable cost and the average total cost curves.D) the minimum of the average variable cost and average total cost curves.
Q:
Which step of the international communications process is important as a check on the effectiveness of the other steps?
A) selecting a proper message
B) encoding the message
C) selecting an appropriate channel of communication
D) decoding the message
E) feedback
Q:
Suppose you own $15,000 of personal property, $5,000 of stock in ABC Corporation, a $1,000 certificate of deposit, and $10,000 of government bonds. If ABC goes bankrupt, the most you could lose isA) $31,000. B) $26,000. C) $15,000. D) $5,000.
Q:
The ________ step in the international communications process refers to the information about the effectiveness of the message that flows from the receiver back to the information source for evaluation of the effectiveness of the process.
A) message channel selection
B) interpretation
C) encoding
D) decoding
E) feedback
Q:
A manufacturer of sports bicycles uses various cycling legends and sports celebrities as brand ambassadors to promote its product in China. Bicycles in China are used mainly by the working class for commuting, not sports, so the promotional campaign was a failure. During which step of the international communications process did the manufacturer most likely go wrong?
A) information source
B) message channel
C) encoding
D) decoding
E) noise cancellation
Q:
The goal of the firm isA) low labor turnover. B) to maximize sales.C) to minimize costs. D) profit maximization.
Q:
In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time.
Q:
Using the Internet as a communication medium when only a small percentage of an intended market has access to it is an example of an error related to
A) feedback.
B) decoding.
C) message channel selection.
D) encoding.
E) message selection.
Q:
An indifference curve between one dozen eggs and several dozens of eggs would beA) bowed in to the origin. B) bowed out from the origin.C) a downward sloping straight line. D) a straight line from the origin.
Q:
Using newspapers or magazine ads as a channel of communication when the majority of the intended users cannot read is an example of ineffective ________ in the communications process.
A) feedback
B) media channel selection
C) noise
D) market selection
E) message selection
Q:
The Present Value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know its worth at the future date.
Q:
As marginal utility declines but remains positive, thenA) total utility continues to increase but at a decreasing rate.B) total utility also declines. C) total utility is unaffected. D) none of the above.
Q:
In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the ________ step.
A) feedback
B) decoding
C) amplification
D) encoding
E) message selection
Q:
Which of the following is NOT a determinant of the price elasticity of demand?
A) the number of producers of the good
B) the number of substitutes available to buyers
C) the time consumers have to adjust to a price change
D) expenditures on the item as a percentage of a consumerʹs total budget
Q:
Janel, a media consultant, is helping the integrated marketing communications manager of a French cosmetics company with the design and content to be used in an upcoming promotional campaign in Japan. The IMC manager knows what to convey but wants to word it in a culturally relevant manner. With which step of the international communications process is Janel helping the company?
A) encoding of the message
B) choosing an appropriate channel for the message
C) decoding of the message
D) providing feedback from customers
E) reducing noise from competing ad campaigns
Q:
The number of periods in a present value calculation can only be expressed in years.
Q:
The price elasticity of demand is a measure ofA) the responsiveness of the quantity demanded of a good to a changes in the price of the good.B) the quantity demanded of a good at a given price.C) the demand for a product holding prices constant.D) the horizontal shift in the demand curve when the price of a good changes.
Q:
A company can use present and future value computations to estimate the interest component of holding assets over time.
Q:
Which element of the international communications process comprises external influences such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of the communication?
A) selecting a message source
B) encoding
C) selecting a message channel
D) decoding
E) noise
Q:
According to economic analysis, the optimal level of pollution isA) always zero.B) at the point at which the marginal benefits of pollution control exceed the marginal cost. C) at the point at which the marginal benefits of pollution control are less than the marginal cost.D) at the point at which the marginal benefits from pollution control are equal to the marginal cost.
Q:
A multinational pharmaceutical company used a saffron trident in a promotional campaign for one of its drugs in India. The saffron trident, a religious symbol in India, was meant to indicate the three levels of efficacy of the drug but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which step of the international communications process?
A) encoding
B) noise cancellation
C) media channel selection
D) message transmission
E) information source selection
Q:
An interest rate is also called a discount rate.
Q:
Which of the following statements about the Social Security (OASDI) program is FALSE?A) Benefits are paid to individuals who would be financially secure in their absence. B) Benefits are based on need.C) Benefits are an intergenerational transfer program from those who work to those who donʹt work.D) When an insured worker dies, benefits continue for widows or other dependents.
Q:
________ is defined as the interpretation by the receiver of the symbolism transmitted from an information source.
A) Encoding
B) Message selection
C) Decoding
D) Message channel selection
E) Feedback evaluation
Q:
From the perspective of a depositor, a savings account is a liability with interest.
Q:
Under monopsony, marginal factor cost isA) equal to the wage rate.B) below the wage rate but increases as more workers are hired.C) greater than the wage rate. D) downward sloping.
Q:
An international marketing executive with a product message to communicate specifically acts as a(n)
A) decoder.
B) information source.
C) receiver.
D) encoder.
E) noise source.
Q:
Interest is the payment to the owner of an asset for its use by a borrower.
Q:
Collective bargaining refers toA) negotiations between workers and health officials.B) negotiations between management of a company and a labor union.C) farming methods in Marxist states.D) the process of electing union leaders.
Q:
The sales force of a company that provides the company's product specifications to the customer acts as a(n)
A) decoder.
B) interpreter.
C) receiver.
D) message channel.
E) noise.
Q:
The MRP of labor will shift to the left ifA) labor productivity increases. B) labor productivity decreases.C) wages increase. D) wages decrease.
Q:
During ________, the message from the source is converted into effective symbolism for transmission to a receiver.
A) interpretation
B) scrambling
C) standardizing
D) decoding
E) encoding
Q:
Economists who think the capture theory explains regulatory behavior will support their claims by noting that
A) regulation as carried out in this country generates larger profits for the firms and does not generate lower prices for consumers.
B) consumers actually dominate regulatory hearings through the influence of consumer advocacy groups.
C) Congress ensured that consumers have more influence on the decisions of regulators by setting up the agencies in ways that insulated the regulators from the regulated firms.
D) the firms that are regulated have greater incentive to try to influence regulators than do consumers.
Q:
During which step of the international communications process does the receiver of the message interpret symbolism transmitted from an information source?
A) selecting a message
B) encoding
C) selecting a message channel
D) decoding
E) identifying the sources of noise
Q:
Because all of his friends stopped exclusively wearing black clothes, Doug wears anything but black clothes. This is known asA) a negative sum game. B) collusion.C) positive market feedback. D) negative market feedback.
Q:
The emergence of pan-European communications media will most likely cause companies to
A) opt for localized promotional campaigns.
B) opt for greater customization of promotional efforts.
C) promote their products only in English.
D) use only the Internet as their message channel.
E) choose more standardized promotional efforts.
Q:
Due to differences in culture in different markets, standardized products that are marketed globally will most likely require
A) different advertising appeals.
B) different primary functions.
C) consistent promotional messages.
D) standardized marketing strategies.
E) standardized secondary attributes.
Q:
For a firm that sells an information product, the long -run equilibrium exists at a point whereA) price equals average total cost. B) price equals average variable cost.C) price equals average fixed cost. D) price equals marginal cost.
Q:
What is an example of the primary function of a product?
A) the ability of a camera to take a picture
B) the design and form factor of a phone
C) the color of a cell phone
D) the prestige associated with driving a car
E) the shape of speakers
Q:
The key feature of monopolistic competition isA) interdependence of the firms. B) lack of advertisement.C) product differentiation.D) the small number of firms in the industry.
Q:
When developing an international advertisement campaign, what is the first step of the process?
A) Compose and secure a budget based on what is required to meet goals.
B) Specify the goals of the communication.
C) Select effective media.
D) Execute the campaign.
E) Perform marketing research.
Q:
The profit maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly canA) only choose the desired output, while a competitive firm can control only price. B) only choose the desired price, while a competitive firm can control only output. C) control the position of its demand schedule, but a competitive firm cannot.D) control the desired price and output to maximize profits, but a perfectly competitive firm can only choose the desired output.
Q:
Firms in a perfectly competitive industry are earning economic losses. This isA) a signal to entrepreneurs that some of the firms in the industry should exit and the resources of these firms should move into production of other goods.B) a signal to entrepreneurs that additional resources should be brought into this industry in order to make it profitable.C) a signal that the entrepreneurs are doing a poor job and should become workers for someone else.D) a signal to government officials that a subsidy is needed for the firms in the industry.
Q:
In the context of international advertising, it has been observed that advertising expenditures are generally
A) linear.
B) supplemental.
C) minimal.
D) cyclical.
E) one-time only.
Q:
The total amount received from the sale of output isA) average revenue. B) marginal revenue.C) total revenue. D) price revenue.
Q:
Of all the elements of the marketing mix, decisions involving ________ are those most often affected by cultural differences among country markets.
A) direct selling
B) public relations
C) trade shows
D) advertising
E) sales promotion
Q:
Suppose there are fixed costs and marginal costs that are constant. Then we know thatA) average total costs are also constant.B) average variable costs decrease continuously as output increases, and lie above the marginal cost curve.C) average total costs decrease continuously as output increases, and lie above the average variable cost curve, which also is decreasing continuously.D) average total costs decrease continuously as output increases, and lie above the average variable cost curve, which is constant.
Q:
In an international advertising campaign, what happens once the goals of the communication have been specified?
A) Develop the most effective message(s) for the market segments selected.
B) Compose and secure a budget.
C) Select effective media.
D) Execute the campaign.
E) Evaluate the campaign relative to the goals specified.
Q:
If a corporation fails, the last recipients of funds that may remain areA) preferred stockholders. B) common stockholders.C) bond holders. D) government tax collectors.
Q:
Corporate ________ might be classified as an aspect of sales promotions or public relations, though they also bear a connection to advertising.
A) entrepreneurships
B) sustainability
C) governance
D) espionage
E) sponsorships
Q:
On a bar graph comparing a firmʹs economic profit with its accounting profit, it will always be true thatA) explicit costs will be greater in the column representing accounting profit. B) explicit costs will be greater in the column representing economic profit. C) total revenue will be greater in the column depicting accounting profit.D) opportunity costs will be missing from the column depicting accounting profit.
Q:
Since 2007, FedEx has contributed millions to the PGA Tour, and as its most lucrative donor, an event is named after the company. This is an example of
A) an entrepreneurship.
B) sustainability.
C) governance.
D) a bribe.
E) a sponsorship
Q:
Which element of integrated marketing communications includes encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events?
A) public relations
B) direct selling
C) crisis management
D) personal selling
E) sales promotion
Q:
An indifference curve cannot be positively sloped becauseA) the law of diminishing marginal utility would be violated. B) the substitution effect would be violated.C) a point to the right of another point will represent a lower quantity of both goods and a reduction in utility.D) a point to the right of another point will represent a higher quantity of both goods and an increase in utility.
Q:
Which statement best defines the concept of public relations?
A) It is the practice of using the public to promote a company's products through vehicles like blogs.
B) It is the direct sale of goods at discount rates to the public at trade fairs.
C) It the creation of relationships with the media to help communicate messages to their customers, the general public, and governmental regulators.
D) It is the distribution of samples and coupons directly to the public.
E) It is the use of various forms of promotions to improve relationships with customers..
Q:
If we are graphing total utility, then the total utility curve willA) always be increasing.B) always be decreasing.C) be increasing as long as marginal utility is positive.D) be horizontal if marginal utility is positive.
Q:
An especially effective promotional tool when a product concept is new or has a very small market share is
A) sponsorship.
B) sweepstakes.
C) product sampling.
D) contests.
E) product tie-ins.
Q:
Which of the following is NOT a determinant of the price elasticity of demand?
A) the availability of potential substitutes
B) the share of the budget spent on the item
C) the time the consumer has to adjust to the price change
D) the cost to produce the product