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Questions
Q:
In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of ________ devices.
A) personal selling
B) sales promotions
C) content marketing
D) direct selling
E) public relations
Q:
Attaining higher and higher levels of air cleanliness causesA) additional costs to rise to increasingly high levels.B) larger and larger increases in per capita incomes. C) additional costs to fall to lower and lower levels. D) larger and larger marginal benefits to society.
Q:
Sales promotions are short-term efforts directed to the consumer or retailer to achieve specific objectives such as
A) consumer product trial or immediate purchase.
B) reducing advertising expenses.
C) discouraging stores from stocking a product.
D) eliminating the need for retail point-of-purchase displays.
E) long-term performance of a product.
Q:
If an individual receives in-kind transfers from the government in the form of food stamps, public housing, and so on, his money income isA) less than his total income.B) greater than his total income.C) the same as his total income.D) equal to his in-kind income plus his wages.
Q:
Sales promotions are
A) marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation.
B) long-term efforts directed to a manufacturer or supplier.
C) composed of activities that encourage the press to cover positive stories about companies.
D) ineffective in markets where consumers are hard to reach.
E) the only element of the marketing mix that are affected by cultural differences among country markets.
Q:
A monopsonist is currently employing 50 workers at $10 an hour. It wants to hire an additional worker, but will have to pay the worker $10.10. The marginal factor cost isA) ten cents.B) $10.00. C) $10.10. D) $15.10.
Q:
What are the major components in the marketing communications mix for most companies?
A) public relations and advertising
B) direct selling and trade shows
C) advertising and personal selling
D) public relations and sales promotions
E) direct selling and sales promotions
Q:
Workers in the United States were granted the legal right to engage in collective bargaining by theA) National Labor Relations Act. B) Taft-Hartley Act.C) Landrum-Griffin Act. D) Knights of Labor Act.
Q:
Integrated marketing communications include
A) marketing management.
B) research and development.
C) human resources.
D) logistics.
E) advertising.
Q:
The MRP of labor will shift to the right ifA) labor productivity increases. B) labor productivity decreases. C) wages increase. D) wages decrease.
Q:
Most toy manufacturers would agree that toys cannot be marketed profitably in countries without commercial television advertising directed toward children. In this scenario, commercial television advertising exemplifies the availability of appropriate
A) demonstrations.
B) personal selling services.
C) direct mailing services.
D) public relations.
E) communication channels.
Q:
According to the capture hypothesis of regulation,
A) regulation favors producers over consumers because the producers were able to pay off the regulators.
B) regulation eventually favors producers over consumers because the producers have more at stake than individual consumers.
C) regulation benefits the regulators and the legislators who support the regulation by enabling them to obtain favors from both producers and consumers.
D) regulation benefits the consumers over producers because the number of consumers is greater than the number of producers, giving the consumers more political clout.
Q:
As advertising agencies have expanded internationally, local agencies have virtually disappeared.
Q:
Sunil has decided not to purchase another can of Stosh because his friends laughed at him the last time he purchased some. Stosh is no longer a popular item. Sunilʹs action is known asA) price-leadership. B) negative-sum game.C) positive market feedback. D) negative market feedback.
Q:
In the context of international advertising, search engines have now become crucial directors of Internet users' attention.
Q:
The long-run equilibrium for a firm in an information product industry exists at a point at which
A) marginal cost equals marginal revenue.
B) the demand curve crosses the marginal cost curve.
C) the demand curve is tangent to the average total cost curve.
D) average total cost is minimized.
Q:
International advertisers use foreign national consumer magazines extensively because they have dependable circulation figures.
Q:
The demand for the product of a monopolistically competitive firm is highly elastic whenA) firms collude. B) there are fewer firms in the industry. C) there is a lot of product differentiation. D) there are a lot of close substitutes.
Q:
International advertisers prefer global television (satellite broadcasts) due to the availability of accurate market data in most countries.
Q:
Suppose a monopolistʹs costs and revenues are as follows: ATC = $50.00; MC = $45.00; MR = $40.00; P = $55.00. The firm shouldA) increase output and decrease price. B) decrease output and increase price.C) not change output or price. D) shut down.
Q:
In international advertising, an advertiser should consider availability, cost, and coverage of media.
Q:
Profits and losses are true signals because theyA) convey information about true long-run profits. B) cannot be misinterpreted by entrepreneurs.C) convey information about where to place resources and reward people who act on the information.D) reward people who make profits with even more profits and punish those who make losses with even more losses.
Q:
Industrial advertisers rarely use direct mail for advertising.
Q:
Refer to the above figure. If an individual firm wants to maximize economic profits, it shouldA) charge $5 for its product.B) charge more than $5 for its product since increasing the price will increase revenues. C) charge less than $5 for its product since a lower price will attract more customers.D) withdraw its product from the market forcing the market price up.
Q:
Satellites have the ability to span a wide geographical region covering many different cultures.
Q:
Refer to the above figure. Curve (4) is theA) total fixed cost curve. B) marginal product curve.C) average fixed cost curve. D) average variable cost curve.
Q:
In spite of their inherent entertainment value, radio and television have not been able to become major communications media in most nations.
Q:
If a corporation fails, the first recipients of funds that may remain areA) preferred stockholders. B) common stockholders.C) bond holders. D) no one.
Q:
With some exceptions, usually a majority of the population of less developed countries can be reached readily through the traditional mass medium of advertising.
Q:
To find economic profit from accounting profit, it is necessary toA) subtract dividends. B) add retained earnings.C) subtract the opportunity cost of capital. D) add depreciation expense.
Q:
The French government until recently forbade TV ads for retailers, publishing, cinema, and the press.
Q:
A curve that shows a set of consumption alternatives that give the same level of satisfaction isA) a substitution curve. B) a budget line.C) an indifference curve. D) an income curve.
Q:
In the context of advertising, a marketer's self-reference criterion (SRC) may affect the ultimate success of the communication.
Q:
If marginal utility is zero, total utility isA) falling. B) increasing.C) at its maximum. D) negative.
Q:
A proper feedback system allows a company to correct errors before substantial damage occurs.
Q:
For an addictive drug such as heroin, if the price of heroin increases, thenA) the quantity demanded never changes.B) the quantity demanded will decrease by a relatively large amount. C) the quantity demanded will actually increase.D) the quantity demanded will decrease by a relatively small amount.
Q:
Feedback channels must be carefully selected if a decoded message is to reach the consumer.
Q:
The marginal benefit of pollution abatement is represented byA) an upward sloping curve. B) a downward sloping curve. C) a horizontal curve. D) a vertical curve.
Q:
Other sales personnel are a source of noise in the international communications process.
Q:
If the expected rate of return on a stock exceeds the required rate,
a. The stock is experiencing supernormal growth.
b. The stock should be sold.
c. The company is probably not trying to maximize price per share.
d. The stock is a good buy.
e. Dividends are not being declared.
Q:
If we include cash benefits and in -kind benefits available to low-income people, the share of the U.S. population in povertyA) drops dramatically. B) increases somewhat.C) increases dramatically. D) does not change.
Q:
The feedback step of the international communications process is unrelated to the effectiveness of the other steps.
Q:
An increase in a firm's expected growth rate would normally cause the firm's required rate of return to
a. Increase.
b. Decrease.
c. Fluctuate.
d. Remain constant.
e. Possibly increase, possibly decrease, or possibly remain unchanged.
Q:
Errors at the receiver end of the international communications process can be avoided if the message is encoded properly.
Q:
The main difference between a monopsonist and a competitive buyer of labor is thatA) the monopsonist can hire as many workers as it wants at the going wage while the competitive firm must raise wages to hire additional workers.B) the competitive firm can hire as many workers as it wants at the going wage while the monopsonist can hire more workers at lower wages.C) the competitor can hire as many workers as it wants at the going wage while the monopsonist must raise wages to hire additional workers.D) the monopsonist can force wages down and still hire as many workers as it wants while the competitive firm must increase the wage rate to hire additional workers.
Q:
Assuming g will remain constant, the dividend yield is a good measure of the required return on a common stock under which of the following circumstances?
a. g = 0.
b. g > 0.
c. g < 0.
d. Under no circumstances.
e. Answers a and b are both correct.
Q:
Problems of literacy, media availability, and types of media create problems in the international communications process at the encoding step.
Q:
Which of the following is the largest union in the United States?A) International Brotherhood of TeamstersB) International Brotherhood of Electrical WorkersC) National Education AssociationD) American Federation of State, County, and Municipal Employees
Q:
A project with a 3-year life has the following probability distributions for possible end of year cash flows in each of the next three years:
Q:
When a marketing executive advertises his product in a newspaper, the newspaper acts as a feedback channel.
Q:
The firmʹs demand for labor curve is itsA) average product of labor curve.B) marginal product of labor curve.C) marginal revenue product of labor curve.D) average revenue product of labor curve.
Q:
Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process of communication are called feedback.
Q:
Assume that, to help build your nest-egg, you made two deposits of $100, one on January 1, 2014, and one on July 1, 2014, in a savings account that paid 10 percent compounded semiannually. On January 1, 2015, the bank increased the interest rate paid on savings accounts to 12 percent, annual compounding. Then you made a third $100 deposit on April 1, 2015. How much should there be in your account on January 1, 2016?
a. $353.08
b. $349.95
c. $355.27
d. $362.10
e. $338.43
Q:
Under the U.S. system of regulation, most regulars are selected fromA) politicians and their friends.B) the industry that is to be regulated. C) consumer advocacy groups.D) university professors who understand the nature of the industry and who understand the true interests of consumers.
Q:
You will receive a $100 annual perpetuity starting at Year 0, a $300 annual perpetuity with the first payment at the end of Year 5, and a $200 semiannual perpetuity (i.e., 2 payments per year) with the first payment in the middle of Year 10. If you require an effective annual interest rate of 14.49 percent, what is the future value of all three perpetuities together? (Hint: The effective semiannual interest rate is equal to (1.1449)1/2− 1.0 = 7%.)
a. $2,091.86
b. $2,785.14
c. $4,213.51
d. Infinite; the future value of any perpetuity is infinite.
e. Cannot determine the value since some payments are received annually and some semiannually.
Q:
Stephanie listens to punk rock because her friends do. This isA) a positive sum game. B) collusion.C) positive market feedback. D) negative market feedback.
Q:
When a message from a source is converted into effective symbolism for transmission to a receiver, the message is said to have been decoded.
Q:
An investor is considering the purchase of 20 acres of land. An analysis indicates that if the land is used for cattle grazing, it will produce a cash flow of $1,000 per year indefinitely. If the investor requires a return of 10 percent on investments of this type, what is the most he or she should be willing to pay for the land?
a. $1,000
b. $10,000
c. $100,000
d. $150,000
e. $1,000,000
Q:
A reason for the failure of marketing communications is that the message received by the intended audience is not understood because of different cultural interpretations.
Q:
For a firm that sells an information product, the long -run equilibrium exists at a point at which economic profits areA) negative. B) zero.C) positive. D) dependent upon the particular product.
Q:
You have the opportunity to buy a perpetuity which pays $1,000 annually. Your required rate of return on this investment is 15 percent. You should be essentially indifferent to buying or not buying the investment if it were offered at a price of
a. $5,000.00
b. $6,000.00
c. $6,666.67
d. $7,500.00
e. $8,728.50
Q:
Different cultures usually seek different values or benefits from the primary function of a product.
Q:
An implication of the downward slope of the demand curve for a monopolistic competitive firm is thatA) its marginal revenue curve slopes upward.B) its marginal revenue curve and its demand curve are identical (same) line.C) its marginal revenue curve slopes downward but lies above the demand curve. D) its marginal revenue curve slopes downward but lies below the demand curve.
Q:
What are the six issues that must be taken into consideration by an e-vendor?
Q:
Suppose a monopolistʹs costs and revenues are as follows: ATC = $50.00; MC = $35.00; MR = $45.00; P = $55.00. The firm shouldA) increase output and decrease price. B) decrease output and increase price.C) not change output or price. D) shut down.
Q:
Which of the following statements is most correct?
a. The first payment under a 3-year, annual payment, amortized loan for $1,000 will include a smaller percentage (or fraction) of interest if the interest rate is 5 percent than if it is 10 percent.
b. If you are lending money, then, based on effective interest rates, you should prefer to lend at a 10 percent simple, or quoted, rate but with semiannual payments, rather than at a 10.1 percent simple rate with annual payments. However, as a borrower you should prefer the annual payment loan.
c. The value of a perpetuity (say for $100 per year) will approach infinity as the interest rate used to evaluate the perpetuity approaches zero.
d. Statements a, b, and c are all true.
e. Only statements b and c are true.
Q:
Company B found out that the middleman it was using was skimming money from its profits, so it decided it had to terminate the relationship. What does Company B need to know before terminating a middleman in a foreign country?
Q:
A true signal mustA) convey information only.B) convey information and direct the resource owners to act appropriately.C) convey information about the long-run future. D) explain in detail why something should be done.
Q:
Which of the following statements is correct?
a. Simple rates can't be used in present value or future value calculations because they fail to account for compounding effects.
b. The periodic interest rate can be used directly in calculations as long as the number of payments per year is greater than or equal to the number of compounding periods per year.
c. In all cases where interest is added or payments are made more frequently than annually, the periodic rate is less than the annual rate.
d. Generally, the APR is greater than the EAR as a result of compounding effects.
e. If the compounding period is semiannual then the periodic rate will equal the effective annual rate divided by two.
Q:
What is secondary wholesaling and when might it be used?
Q:
TotalOutputTotalCostsTotalOutputTotalCosts100$500106$528101501107540102503108555103506109580104510110615105518111660Refer to the above table. This firm operates in a perfectly competitive market in which the market price is $5/unit. What is true when the firm produces 110 units?A) Total revenue equals $3,075.B) Total costs exceed total revenue by $65.C) Marginal revenue is more than marginal cost. D) Its total profit is $65.
Q:
A $10,000 loan is to be amortized over 5 years, with annual end-of-year payments. Given the following facts, which of these statements is correct?
a. The annual payments would be larger if the interest rate were lower.
b. If the loan were amortized over 10 years rather than 5 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 5-year amortization plan.
c. The last payment would have a higher proportion of interest than the first payment.
d. The proportion of interest versus principal repayment would be the same for each of the 5 payments.
e. The proportion of each payment that represents interest as opposed to repayment of principal would be higher if the interest rate were higher.
Q:
What are the various techniques that can be used to motivate middlemen?
Q:
Refer to the above figure. Average variable costs are represented by curveA) 1. B) 2. C) 3. D) 4.
Q:
Which of the following statements is correct?
a. Cash flow time lines are helpful graphical displays for situations involving simple annual interest but are not useful when time periods are more frequent than annual.
b. The future value of an annuity due is equal to the future value of an otherwise identical regular annuity with interest compounded on each payment for one additional period.
c. There is no precise method of calculating either present values or future values when fractional time periods are involved. We must instead use rough approximations.
d. The terminal value of a stream of uneven cash flows is found by simply summing up all the cash flows.
e. The annual percentage rate (APR) cannot be equivalent to the effective annual rate (EAR).
Q:
Discuss the continuity problem associated with a channel of distribution.
Q:
When a corporation uses profits to pay for the purchase of new capital equipment, this is know asA) reinvestment. B) a coupon payment. C) dividend. D) collusion.
Q:
Which of the following statements is correct?
a. Other things held constant, an increase in the number of discounting periods per year increases the present value of a given annual annuity.
b. Other things held constant, an increase in the number of discounting periods per year increases the present value of a lump sum to be received in the future.
c. The payment made each period under an amortized loan is constant, and it consists of some interest and some principal. The later we are is the loan's life, the smaller the interest portion of the payment.
d. There is an inverse relationship between the present value interest factor of an annuity and the future value interest factor of an annuity, (i.e., one is the reciprocal of the other).
e. Each of the above statements is true.
Q:
What is a foreign sales corporation?
Q:
The economyʹs current rate of interest is 10 percent and a firm has $10,000 of owner -invested capital. Its total revenue is $5000 and the firmʹs explicit costs are $3500. From this we know that this firmʹsA) accounting profit is $500. B) economic profit is $1,500.C) accounting profit is $11,500. D) economic profit is $500.