ADMS 2200 Study Guide - Final Guide: Association To Advance Collegiate Schools Of Business, Final Good, Life Insurance
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Question 1
With respect to consumer behavior, one's attitudes, learning, and perceptions would be
impersonal influences | ||
interpersonal influences | ||
personal influences | ||
insitutional influences |
Question 2
In Maslow's hierarchy of needs,
a physiological need must be met directly before social needs. | ||
esteem needs are the highest order of needs. | ||
self-actualization needs are the highest order | ||
safety needs and esteem are of the same importance. |
Question 3
The most likely product to be purchased in an attempt to satisfy self-esteem needs would be
"super class" tickets for your next air flight. | ||
a really fast computer. | ||
a home security system. | ||
yogurt and health food. |
Question 4
Which of the following is not a characteristic that distinguishes organizational markets from consumer markets?
Organizational markets are more geographically concentrated. | ||
More people exert influence on the organizational buying decision. | ||
The organizational market tends to have a greater number of buyers. | ||
Organizations often engage in multiple sourcing and vendor analysis. |
Question 5
Consumers may attempt to reduce postpurchase anxiety in the consumer decision process by
avoiding favorable information about the selected brand | ||
seeking reassurance from dissatisfied customers | ||
seeking information that favors the rejected brands | ||
ignoring unfavorable reports about the chosen brand |
Question 6
The buying center concept explains how groups of people participate informally in business purchase decisions and
methods to break through group perceptions. | ||
the role the group members play in buying decisions. | ||
how family units operate as buying centers. | ||
the process of performing vendor analysis. |
Question 7
In the organizational buying process, a triggering event such as announcement of the availability of a new product whose use could improve the company's market performance is referred to as
need or opportunity recognition | ||
identification of suppliers | ||
information search | ||
word-of-mouth exploration |
Question 8
An undifferentiated marketing strategy
serves the consumer better because the products offered are designed to meet the needs of a specific group of people | ||
benefits from the control and efficiency of short production runs | ||
ignores differences among consumer groups and focuses on the broad market | ||
is the most common strategy today and is used more now than in the past |
Question 9
Goods purchased by the ultimate consumer for personal use are called
personal products | ||
purchased products | ||
consumer products | ||
commercial products |
Question 11
A particular purchasing agent might allow some salespeople to see the engineers responsible for developing product specifications but not allow others the same privilege. In the buying center, this purchasing agent is filling the role of
a "hard" nose | ||
a gatekeeper | ||
an influencer | ||
a decider |
Question 12
"Our prices are the lowest, we guarantee it" is an example of a positioning strategy based on the product's
competitors | ||
price | ||
class | ||
application |
Question 13
Segmenting the market based on exactly how an industrial purchaser will use products is referred to as
customer-based segmentation | ||
benefits segmentation | ||
end-use application segmentation | ||
geographic segmentation |
Question 14
The lumber your carpenter purchases to finish out your basement is classified as
a home improvement product | ||
a raw material | ||
a business product | ||
a consumer good |
Question 15
When consumer demand for personal computers affects computer manufacturers' demand for computer chips, this situation is known as
volatile demand | ||
conjoined demand | ||
derived demand | ||
joint demand |
Question 16
Which of the following is a personal factor in consumer bahavior?
a cultural influence | ||
group membership | ||
friends' opinions | ||
a person's attitudes |
Question 17
Cognitive dissonance would be most likely to occur after the purchase of
sneakers | ||
groceries | ||
an automobile | ||
cosmetics |
Question 18
Which of the following would be most likely to break through a person's perceptual screen?
a newspaper ad featuring white type on a black background | ||
a black- and -white classified ad | ||
reducing the size of the ad | ||
using fewer colors in the ad |
Question 19
The Fortune 500 list of America's largest firms based on sales revenues and number of employees provides a basis for
market segmentation based upon customer type | ||
demographic segmentation based upon geographic location | ||
end-user segmentation of this market | ||
demographic segmentation based upon customer size |
Question 20
Straight rebuy behavior by industrial purchasers will probably continue if the supplier provides
poor service | ||
poor quality | ||
shipping delays | ||
satisfactory performance |
Question 21
A controversial technique of subconscious communication, aimed at circumventing the perceptual screens, is called
shadowed perception | ||
leger-de-main | ||
subliminal perception | ||
perception incognito |
Question 22
Those products that are actually considered when making a consumer purchase decision are
customer options | ||
customer selections | ||
the evoked set | ||
the product set |
Question 23
The component of the business market that consists of individuals and firms that acquire goods and services to be used directly, or indirectly, in producing other goods and services is called:
wholesaling and retailing | ||
the commercial market | ||
government | ||
an institution |
Question 24
The institutional market does not include which of the following?
hospitals | ||
museums | ||
motion pictures theatres | ||
universities |
Question 25
Advertising for smoke alarms, air bags and life insurance typically uses which of Maslow's levels of needs to appeal to consumers?
self-esteem needs | ||
safety and security needs | ||
physiological needs | ||
protection needs |
Question 26
One type of buying center role is that of the
influencer who supplies information for evaluation. | ||
authority figure who decides who, what, where, when, and how. | ||
disseminator who function is to get advertisements to prospects. | ||
specifier who needs on the specifications of products |
Question 27
Manufacturing firms that convert to automated factory systems must purchase equipment that they have never bought before, such as robots and computers. This buying situation is called
a straight rebuy | ||
a modified rebuy | ||
a contract purchase | ||
new-task buying |
Question 29
A commonly used basis for segmenting consumer markets is
product-related characteristics | ||
health-related matters | ||
information-related concepts | ||
performance-related criteria |
1 points
Question 30
The business market is also known as the
wholesale market | ||
corporate market | ||
organizational market | ||
distribution market |
Question 31
Which of the following consumer problem-solving behaviors requires the least effort?
extended problem solving | ||
limited problem solving | ||
impulsive buying | ||
routine response behavior |
Question 32
The relationship between the demand for silk cloth and consumer demand for silk blouses and neckties is known as
joint demand | ||
demand volatility | ||
derived demand | ||
consumer demand |
Question 33
Examples of business market items that would usually be purchased as a straight rebuy are
high quality raw materials | ||
heavy-duty machinery | ||
paper clips and pencils | ||
high-tech components |
Question 34
The person who joins a local bowling league for the social interaction, even if he or she is a novice bowler, is probably trying to satisfy his or her
esteem needs | ||
self-actualization needs | ||
physiological needs | ||
belongingness/social needs |
Question 35
Campbell's "Soup for One" is an example of a product that is targeted to
large families with high product usage of certain things but different preferences | ||
dual-income couples with no kids | ||
well-off older families | ||
non-traditional households such as nonfamily, single-person or single-parent situations |
Question 36
Red Ryder Industries markets rodeo and horse riding supplies specifically to women. This is an example of
market stratification | ||
market segmentation | ||
non-traditional marketing | ||
multi-gender marketing |
Question 37
Purchases made by choosing a preferred brand or one of a limited group of acceptable brands are called
extended problem solving | ||
routinized response behavior | ||
limited problem solving | ||
selective problem solving |
Question 38
The slogan "the graying of America" describes the trend
toward people retiring later in life | ||
of the word force to contain a disproportionate number of older Americans | ||
for gray hair to develop from years of high-stress urban work | ||
upward in the elderly population as Americans tend to live longer |
Question 39
People or institutions must have sufficient purchasing power and the authority and willingness to buy to be considered a
market | ||
buyer | ||
player | ||
segment |
Question 40
Reference group influences would be most likely to be significant in the decision to buy
a loaf of bread | ||
a Mercedes Benz | ||
a clock radio | ||
cellophane tape |
Question 41
Internal search in the consumer decision process may include
subscribing to consumer magazines to evaluate alternatives | ||
talking to family members | ||
reviewing past purchases | ||
surveying coworkers for buying options |
Question 42
The process of dividing the total market into several smaller, homogeneous groups is called
market penetration | ||
market segmentation | ||
market mixing | ||
market division |
1) Which of the following transactions would be included in GDP?
a) The purchase of a Monet painting.
b) The purchase of paper clips.
c) The purchase of Telstra shares.
d) The purchase of a used car.
2) Economics is the study of
a) the choices everybody makes to attain their goals, given their scarce resources.
b) supply and demand.
c) how to make money in a market economy.
d) how to make money in the stock market.
3) The economy is considered to be at full employment when
a) all unemployment is voluntary.
b) all unemployment is frictional or structural.
c) there are no unemployed workers.
d) there are more unemployed workers than job vacancies
4) An example of an intermediate good would be
a) a can of cool drink sold by a super‐market.
b) a microwave used at home.
c) the bread that goes into a sandwich sold by a lunch bar.
d) the petrol purchased by consumers for their cars
5) From 2004 to 2005, the CPI for medical care increased from 260.8 to 272.8. What was the inflation rate for medical care?
a) 12 percent
b) 11.1 percent
c) 4.9 percent
d) 4.6 percent
6) A shift outwards of the nation's production possibility frontier can occur from
a) a reduction in unemployment.
b) an increase in the size of the labour force.
c) a change in the amounts of one good desired.
d) a natural disaster like a hurricane or severe earthquake
7) What assumptions about humans do economists make?
a) People are greedy and selfish.
b) None, because economics takes humans as given.
c) People are rational and respond to incentives.
d) Humans prefer to live in a society that values fairness above all else.
8) The labour force is the
a) a number of people employed minus the number of people unemployed.
b) ratio of the number of people employed by the number of people unemployed.
c) ratio of the number of people employed to the working-age population.
d) the number of people employed plus the number of people unemployed.
9) The production possibility frontier shows
a) attainable combinations of two products that may be produced with available resources.
b) the various products that can be produced now and in the future.
c) what an equitable distribution of products among citizens would be.
d) the rate of substitution between capital and labour.
10) Which of the following transactions would be included in the official calculation of GDP?
a) Bridgestone sells $2 million worth of tyres to General Motors Holden
b) You illegally download music off the Internet to put on your new iPod.
c) A new iPod.
d) A student buys a used textbook at the bookstore.
11) What are the three fundamental questions that any economy must answer?
a) What will be the prices of goods, how will these goods be produced, and who gets them?
b) What will be the prices of goods, what will be produced, and who gets them?
c) What will be produced, how will these goods be produced, and who gets them?
d) How much will be saved, what will be produced, and how can these goods be fairly distributed?
12) If the nominal interest rate is 6% and the inflation rate is 2%, then the real interest rate is
a) 3%.
b) 2%.
c) 4%.
d) 8%.
14) Suppose that a very simple economy produces three goods: movies, burgers, and bikes. Suppose the quantities produced and their corresponding prices for 2004 and 2009 are shown in the following table:
2004 | 2009 | |||
Quantity | Price | Quantity | Price | |
Movies | 20 | $6 | 30 | $7 |
Burgers | 100 | $2 | 90 | $2.5 |
Bikes | 3 | $1000 | 6 | $1100 |
What is real GDP in 2009, using 2004 as the base year?
a) $3690
b) $7035
c) $6360
d) $3320
15) If the production possibility frontier is graphed as a straight line, what does this mean?
a) Opportunity costs are constant as production shifts from one product to the other.
b) It is easy to efficiently produce output.
c) Nothing, there is no significance of a straight line production possibility frontier.
d) Opportunity costs are increasing as production shifts from one product to the other.
16) If you have both an economics exam and a management exam tomorrow, but find that you have time to fully study for only one of them, what are you facing?
a) A failing grade in both exams
b) A zero opportunity cost
c) A trade‐off
d) An impossible situation
17) Which of the following is a problem inherent in centrally planned economies?
a) Production managers do not satisfy consumer wants but the government's orders.
b) Too much production of low‐cost, high‐quality goods and services.
c) There are no problems, everyone, including consumers are satisfied.
d) None of these describe the problem inherent in a centrally planned economy.
18) Inflation is an increase in the
a) average hourly wage rate.
b) general price level in the economy.
c) the overall level of economic activity.
d) rate of growth of GDP.
19) Total production in the economy is measured as the
a) dollar value of all final goods and services produced in the economy.
b) the total number of services produced in the economy.
c) the total number of goods produced in the economy.
d) the total number of goods and services produced in the economy.
20) An increase in the price of dairy products produced domestically will be reflected in
a) Both the GDP deflator and the consumer price index.
b) Neither the GDP deflator nor the consumer price index.
c) The GDP deflator but not in the consumer price index.
d) The consumer price index but not in the GDP deflator.
21) The reason that opportunity cost arises is that
a) money has proven to be an inefficient means of facilitating exchange in a market.
b) sometimes there are no alternative decisions that can be made.
c) resources are limited at any point in time. d) people have unlimited wants.
21) You have an absolute advantage whenever you
a) are better educated than someone else.
b) can produce something at a lower opportunity cost than others.
c) can produce more of something than others with the same resources.
d) prefer to do one particular activity.
22) Which of the following is an example of a worker experiencing cyclical unemployment?
a) A Freightliner employee who was sacked because of a recession.
b) A worker who quits his job because he does not get along with his boss
c) A worker that changes jobs to move closer to her family.
d) An assembly line worker who loses his job because of automation.
23) A company named Home Depot sells new and used doors to contractors who build new homes. Home Depot also sells new and used doors to home‐owners. Which of the following would be counted in GDP?
a) The sale of a used door to a home‐owner
b) The sale of a used door to for construction for installation into a new home.
c) The sale of a new door to for construction for installation into a new home.
d) The sale of a new door to home‐owner.
24) If you buy shares, the dollar value is
a) not included in GDP.
b) included in GDP under consumer expenditure.
c) included in GDP as a business expense.
d) included in GDP under-investment.
25) During the 1930s, Australia and other industrialised countries experienced the Great Depression with a large number of workers and factories unemployed.Which of the following points on a production possibility frontier model would represent this experience?
a) A point on the frontier
b) A point inside the frontier
c) An increase in the opportunity cost of the substitution between capital and labour
d) A point outside the frontier
26) How is the decision about what goods and services will be produced made in a market economy?
a) The government decides on what will be produced.
b) Producing firms decide to produce only what the firms' owners say must be produced.
c) By consumers, firms, and government choosing which goods and services to buy.
d) What will be produced is determined by what society needs the most.
27) In the country of Shem, the CPI is calculated using a market basket consisting of 5 apples, 4 loaves of bread, 3 robes and 2 gallons of gasoline. The per‐unit prices of these goods have been as follows: Using 2002 as the base year, what was the inflation rate between 2003 and 2004?
a) 28.5 percent
b) 34.2 percent
c) 47 percent
d) It is impossible to determine without knowing the base year.
28) Given the following information, calculate the unemployment rate: Full‐time employed = 80 Part‐time employed = 25 Unemployed = 15 Discouraged workers = 5 Members of underground economy = 6 Consumer Price Index = 110
a) 18.8 per cent.
b) 12.5 per cent.
c) 16.7 per cent.
d) 25 per cent.
29) If the quantity of resources available is fixed, as more of a good is produced, the opportunity cost of producing it increases. The most probable reason for this is that
a) as more of a good is produced, the quality of technology available to produce additional units declines.
b) the price of the inputs used to produce the good will rise.
c) consumers are unwilling to pay higher prices to cover the increases in production costs.
d) resources are not equally well‐suited to producing all goods.
30) Which of the following is a normative statement?
a) The current high price of petrol is the result of strong worldwide demand.
b) The price of petrol is too high.
c) Larger vehicles always use more fuel per kilometre than smaller vehicles
d) The supply of petrol has not been able to meet the demand for petrol.
31) Transfer payments are not included in GDP because
a) they do not generate income.
b) their market value is difficult to measure.
c) they are not purchases of goods or services.
d) their value is included in government expenditure.
32) The opportunity cost of going to your economics class
a) depends on the cost of your transport getting to class.
b) is equal to the highest value of alternative use of the time.
c) is zero because there is no admission charged if you are enrolled in the class.
d) depends on the salary of the lecturer.
33) Establishing employment agencies that speeds up the process of matching unemployed workers with unfilled jobs are an attempt to lower
a) cyclical unemployment.
b) seasonal unemployment.
c) structural unemployment.
d) frictional unemployment.
34) Suppose that money GDP for 2009 was $15 000 billion and the price index was 150 and in 2010 money GDP was $17 050 billion with a price index of 155. What is the rate of economic growth?
a) 5%
b) 10%
c) 2%
d) 1%
35) An individual has a comparative advantage in activity whenever she
a) also has an absolute advantage in that activity.
b) can perform the activity at a lower opportunity cost than another person can.
c) can do everything better than everyone else can.
d) can do the activity in less time than anyone else.
36) GDP is not a perfect measure of wellbeing because
a) GDP is adjusted for increases in drug addiction.
b) GDP is not adjusted for the effects of pollution.
c) GDP is adjusted for changes in crime.
d) the value of leisure is included in GDP.
37) What does an entrepreneur do in a market economy?
a) Organise the factors of production in a working unit.
b) Stand to lose the personal funds provided.
c) Develop the vision for the firm and ensure funding for the firm.
d) An entrepreneur does all of these things.
38) An example of a transfer payment is
a) the purchase of a new government office block.
b) a teacher's pay is transferred electronically from the government to the teacher.
c) interest repayments on a loan.
d) an unemployment benefit.
39) Which of the following is a microeconomics question?
a) What will be the level of total production in the national economy?
b) How much income will be saved and how much will be spent on consumer goods?
c) What factors determine the price of computers in the market?
d) Why is the rate of unemployment rising?
40) The measure of production that values production using current prices is called
a) value-added GDP.
b) nominal GDP.
c) black economy GDP.
d) real GDP.
41) Which of the following causes the official measure of the unemployment rate to understate the true extent of joblessness?
a) People who collect unemployment benefits report themselves to be searching for a job.
b) Discouraged workers are counted as unemployed.
c) Discouraged workers are not counted as unemployed.
d) Many full-time workers really want to be part-time workers.
42) A production possibility frontier will shift inwards if
a) inefficiency in production processes arise.
b) there is an increase in the rate of unemployment.
c) productive resources are destroyed due to war.
d) all of these options are correct.
43) Structural unemployment would increase when
a) discouraged workers drop out of the workforce.
b) the economy enters a recession.
c) the number of individuals who quit their job to find another increase.
d) workers are replaced by machines and the workers do not have the skills to perform new jobs.
44) The 2005 CPI was 196 and the 1982 CPI was 96.5. If your parents put aside $1,000 for you in 1982, how much would you have needed in 2005 in order to buy what you could have bought with the $1,000 in 1982?
a) $1,834.20
b) $2,031.09
c) $2,308.89
d) None of the above is correct.
45) What is an economic model?