Could You Pass This Marketing Exam? Quiz
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Questions and Answers
- 1.
The output of goods and services produced by labor and property located within a country is GNP.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The output of goods and services produced by labor and property located within a country is actually Gross Domestic Product (GDP), not Gross National Product (GNP). GNP includes the output produced by labor and property owned by the country's residents, regardless of where it is located.Rate this question:
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- 2.
Which economy would best describe that of the U.S.?
- A.
Mixed economy
- B.
Traditional economy
- C.
Socialist economy
- D.
Command economy
Correct Answer
A. Mixed economyExplanation
A mixed economy would best describe that of the U.S. because it combines elements of both a market economy and a planned economy. In a mixed economy, there is a balance between government intervention and private enterprise. The U.S. has a free market system where individuals and businesses have the freedom to make economic decisions, but the government also plays a role in regulating and providing certain services such as healthcare, education, and infrastructure. This combination allows for both competition and innovation, as well as social welfare and economic stability.Rate this question:
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- 3.
If you lived in a socialist country you would pay _________taxes than if you lived in the U.S.
- A.
Lower
- B.
Higher
- C.
Just the same
- D.
None of the above
Correct Answer
B. HigherExplanation
Living in a socialist country typically means having a higher tax burden compared to living in the U.S. This is because socialist countries tend to have higher tax rates in order to fund social welfare programs and provide more extensive government services. These higher taxes are often used to redistribute wealth and provide a higher level of social and economic equality among citizens. Therefore, it can be expected that if you lived in a socialist country, you would likely pay higher taxes compared to living in the U.S.Rate this question:
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- 4.
The following are political philosophies
- A.
Traditional, market, command
- B.
Specialization, scarcity, mixed
- C.
Capitalism, communism, socialism
- D.
None of the above
Correct Answer
C. Capitalism, communism, socialismExplanation
The correct answer is capitalism, communism, socialism. These are political philosophies that represent different economic systems. Capitalism is an economic system where the means of production are privately owned and operated for profit. Communism is a system where the means of production are owned and controlled by the community as a whole. Socialism is an economic system where the means of production are owned and controlled by the state or the community. These three philosophies represent different approaches to the distribution of resources and the role of government in the economy.Rate this question:
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- 5.
What 3 broad categories do economists use to classify all economic systems?
- A.
Mixed, capitalism, specialization
- B.
Capitalism, socialism, market
- C.
Command, traditional, socialism
- D.
Traditional, market, command
Correct Answer
D. Traditional, market, commandExplanation
Economists use three broad categories to classify all economic systems: traditional, market, and command. Traditional economies are based on customs and traditions, where economic decisions are made based on long-standing practices. Market economies rely on supply and demand, with individuals and businesses making economic decisions. Command economies are centrally planned, with the government controlling all economic decisions. These three categories help economists understand and analyze different economic systems based on their fundamental principles and mechanisms.Rate this question:
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- 6.
What 3 factors affect the business cycle?
- A.
Consumers, foreign countries, businesses
- B.
Businesses, consumers, the government
- C.
Businesses, competitors, foreign trade
Correct Answer
B. Businesses, consumers, the governmentExplanation
The business cycle is influenced by three main factors: businesses, consumers, and the government. Businesses play a crucial role in the cycle as they drive economic growth through investments, production, and job creation. Consumers, on the other hand, contribute to the cycle by their spending habits, as their demand for goods and services affects business revenues and overall economic activity. Lastly, the government influences the business cycle through its fiscal and monetary policies, such as taxation, spending, and interest rate adjustments, which can impact business and consumer behavior.Rate this question:
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- 7.
Which of the following best describes the political and economic philosophy characterized by marketplace competition and private ownership of businesses?
- A.
Communism
- B.
Capitalism
- C.
Socialism
- D.
Reformism
Correct Answer
B. CapitalismExplanation
Capitalism is the correct answer because it is a political and economic philosophy that emphasizes marketplace competition and private ownership of businesses. In a capitalist system, individuals and companies are free to pursue their own economic interests, and the market determines prices and the allocation of resources. This philosophy is characterized by the belief in the importance of individual initiative, entrepreneurship, and the profit motive in driving economic growth and prosperity.Rate this question:
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- 8.
A market economy is different than a command economy because
- A.
There is no government involvement in economic decisions
- B.
It is a traditional economic system
- C.
Businesses cannot decide how much goods to produce
- D.
It is a mixed economy
Correct Answer
A. There is no government involvement in economic decisionsExplanation
A market economy is different from a command economy because there is no government involvement in economic decisions. In a market economy, individuals and businesses have the freedom to make their own economic choices, such as what to produce, how much to produce, and at what price to sell. This allows for competition, innovation, and efficiency in resource allocation. In contrast, a command economy is characterized by central planning and government control over economic decisions, including what and how much to produce.Rate this question:
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- 9.
A healthy economy has 3 goals; they are
- A.
Increase productivity, increase unemployment, increase interest rates
- B.
Decrease unemployment, increase prices, increase interest rates
- C.
Increase productivity, decrease unemployment, maintain stable prices
- D.
Maintain prices, graduate students, decrease productivity
Correct Answer
C. Increase productivity, decrease unemployment, maintain stable pricesExplanation
A healthy economy aims to increase productivity, which refers to the efficiency and output of goods and services produced. This helps to stimulate economic growth and improve living standards. Additionally, decreasing unemployment is crucial as it indicates a higher level of job opportunities and income for individuals, leading to increased consumer spending and overall economic stability. Lastly, maintaining stable prices is essential to prevent inflation or deflation, ensuring that the cost of goods and services remains relatively constant, promoting confidence and predictability in the economy.Rate this question:
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- 10.
Businesses lower a product's price when the supply of the product exceeds the demand for it, according to the laws of supply and demand.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because according to the laws of supply and demand, when the supply of a product exceeds the demand for it, businesses typically lower the price in order to stimulate demand and sell more of the product. This is a common strategy used to prevent excess inventory buildup and maintain profitability. By lowering the price, businesses hope to attract more customers and increase sales, ultimately balancing out the supply and demand equation.Rate this question:
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- 11.
Competition stops a company from acting without regard for the customer.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Competition in the market creates a level playing field for companies, as they have to constantly strive to attract and retain customers. In order to stay ahead of their competitors, companies need to focus on meeting customer needs and providing value. If a company acts without regard for the customer, it is likely to lose customers to competitors who are more customer-centric. Therefore, competition acts as a check on companies, ensuring that they prioritize customer satisfaction and do not act without regard for the customer.Rate this question:
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- 12.
What is the term for the struggle between companies for customers?
- A.
Profit
- B.
Promotion
- C.
Surplus
- D.
Competition
Correct Answer
D. CompetitionExplanation
Competition refers to the struggle between companies for customers. It is a term used to describe the rivalry and effort exerted by businesses to attract and retain customers in order to gain a larger market share. This involves various strategies such as pricing, marketing, product differentiation, and customer service to outperform competitors and achieve success in the marketplace.Rate this question:
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- 13.
What is the group that decides whether or not a business will survive?
- A.
The consumers
- B.
The owners or board of directors
- C.
The government
- D.
The competing businesses
Correct Answer
A. The consumersExplanation
The group that decides whether or not a business will survive is the consumers. Consumers have the power to determine the success or failure of a business by choosing whether or not to purchase its products or services. If consumers are satisfied with a business and continue to support it, the business is likely to thrive. On the other hand, if consumers are dissatisfied or find better alternatives, they may stop buying from the business, leading to its downfall. Therefore, the consumers play a crucial role in determining the survival of a business.Rate this question:
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- 14.
The balance sheet contains the following:
- A.
Assets, employee names
- B.
Competitors, owners' equity, liabilities
- C.
Assets, liabilities, owners' equity
- D.
Liabilities, Sporting KC revenue, assets
Correct Answer
C. Assets, liabilities, owners' equityExplanation
The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It includes three main components: assets, liabilities, and owners' equity. Assets represent the resources owned by the company, such as cash, inventory, and property. Liabilities are the company's obligations to pay debts or fulfill other financial obligations. Owners' equity represents the residual interest in the assets of the company after deducting liabilities. Therefore, the correct answer is assets, liabilities, owners' equity.Rate this question:
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- 15.
What is a nonprofit organization?
- A.
An organization that cannot make a profit
- B.
An organization that cannot generate income
- C.
An organization that has no employee on payroll
- D.
An organization that functions like a business, but reinvests the money it makes in the cause it supports
Correct Answer
D. An organization that functions like a business, but reinvests the money it makes in the cause it supportsExplanation
A nonprofit organization is an organization that functions like a business, meaning it provides goods or services, but the key difference is that it reinvests the money it makes back into the cause it supports instead of distributing profits to shareholders or owners. This allows the organization to further its mission and continue providing services to the community without the goal of making a profit.Rate this question:
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- 16.
_____________ are prohibited in a free enterprise system because they prevent competition.
Correct Answer
monopolies
Monopolies
monopoly
MonopolyExplanation
Monopolies are prohibited in a free enterprise system because they prevent competition. When a single company or entity has exclusive control over a product or service, they can dictate prices and limit consumer choice. This lack of competition can lead to higher prices, lower quality products, and a lack of innovation. Therefore, in order to promote fair competition, monopolies are not allowed in a free enterprise system.Rate this question:
- 17.
Nebraska Furniture Mart price matches or advertises that it is "never undersold"; as a result, it is engaging in _____________ competition.
Correct Answer
price
PriceExplanation
Nebraska Furniture Mart engages in price competition. This means that they strive to offer the lowest prices compared to their competitors. By price matching and advertising that they are "never undersold," they are actively competing with other retailers based on price. This type of competition focuses on offering the best prices to attract customers and gain a competitive advantage in the market.Rate this question:
- 18.
PacSun's financials for 2012 are below. How much are the Assets? Balance Sheet Assets ???? Liabilities $242.03M Owners' Equity $113.1M
Correct Answer
355.13
355.13M
$355.13
$355.13M
$355
355
355M
355.1
355.1MExplanation
The correct answer is $355.13M. This is the amount of assets listed on PacSun's balance sheet for 2012.Rate this question:
- 19.
According to the textbook, the PLACE is the means of getting the product into the consumer's hands.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The explanation for the given correct answer is that the textbook states that the PLACE is the means of getting the product into the consumer's hands. This implies that the place refers to the distribution channels and strategies used to make the product available to consumers. Therefore, the statement is true as per the textbook.Rate this question:
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- 20.
"Buy one get one free" is an example of promotion.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement "Buy one get one free" is commonly used as a promotional strategy by businesses. This offer encourages customers to make a purchase by offering them an additional product for free when they buy one. This type of promotion aims to increase sales and attract more customers by providing them with added value. Therefore, the statement is true.Rate this question:
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- 21.
People who share similar needs and wants and who can purchase your products are called a market.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because a market refers to a group of individuals who have common needs and desires and are capable of buying the products or services offered by a business. These individuals form the target audience for a company and represent potential customers. By understanding the characteristics and preferences of the market, businesses can develop strategies to effectively reach and cater to their needs, ultimately leading to successful sales and growth.Rate this question:
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- 22.
The owner of a miniature golf business provides her customers with?
- A.
A promotion
- B.
A good
- C.
An exchange
- D.
A service
Correct Answer
D. A serviceExplanation
The owner of a miniature golf business provides her customers with a service. This implies that the owner offers a specific activity or experience to the customers, which in this case is playing miniature golf. The customers pay for the service and receive entertainment and enjoyment in return.Rate this question:
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- 23.
Which of the following utilities is not directly related to marketing?
- A.
Information utility
- B.
Form utility
- C.
Place utility
- D.
Possession utility
Correct Answer
B. Form utilityExplanation
Form utility is not directly related to marketing because it refers to the value that is added to a product or service by changing its physical characteristics or form to make it more useful or desirable to consumers. This typically involves activities such as manufacturing, packaging, and branding, which are more closely associated with the production and distribution of goods rather than the marketing of them. Marketing, on the other hand, focuses on activities such as market research, advertising, and promotion, which aim to create awareness, generate demand, and facilitate the exchange of products or services between buyers and sellers.Rate this question:
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- 24.
An ONW student that buys a drink out of the vending machine for himself/herself is considered...
- A.
A customer
- B.
A consumer
- C.
A target market
- D.
Both customer and consumer
Correct Answer
D. Both customer and consumerExplanation
An ONW student who buys a drink out of the vending machine for themselves is considered both a customer and a consumer. They are a customer because they are purchasing a product from the vending machine. They are also a consumer because they are using the product for their own personal consumption.Rate this question:
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- 25.
During the last 3 months of the year, Price Chopper stocks its shelves with plenty of canned pumpkin in order to increase the pumpkin's _______________ utility.
- A.
Price
- B.
Information
- C.
Distribution
- D.
Time
Correct Answer
D. TimeExplanation
During the last 3 months of the year, Price Chopper stocks its shelves with plenty of canned pumpkin in order to increase the pumpkin's time utility. This means that by stocking up on canned pumpkin during this time period, Price Chopper is able to make the product available to customers when they are most likely to want it, such as during the holiday season. This increases the value of the pumpkin to the customers, as they are able to purchase it at a convenient time, thus enhancing its time utility.Rate this question:
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- 26.
Transforming old glass bottles into beautiful new sculptures is an example of _________utility.
- A.
Time
- B.
Marketing
- C.
Form
- D.
Industrial
Correct Answer
C. FormExplanation
Transforming old glass bottles into beautiful new sculptures demonstrates the concept of form utility. Form utility refers to the value added to a product or resource by changing its physical characteristics or appearance to make it more desirable or useful to consumers. In this case, the old glass bottles are being transformed into sculptures, which enhances their aesthetic appeal and increases their value. This transformation adds form utility to the bottles, making them more attractive and desirable to potential buyers or collectors.Rate this question:
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- 27.
When demand and production for a product increase, in the world of Marketing, what usually decreases?
- A.
Prices
- B.
Form
- C.
Possession
- D.
Demand
Correct Answer
A. PricesExplanation
When demand and production for a product increase, prices usually decrease. This is because when there is a higher demand for a product, companies can produce more of it, leading to economies of scale and lower production costs. As a result, companies can afford to lower the prices of the product in order to attract more customers and increase sales. Additionally, competition among companies may also drive prices down as they strive to offer the most competitive prices in the market.Rate this question:
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- 28.
A marketing mix is a formal written document that directs activities for a specific time.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A marketing mix is not a formal written document that directs activities for a specific time. Instead, it refers to a set of marketing tools and strategies that a company uses to promote its products or services. These tools include product, price, place, and promotion, and they are typically adjusted and adapted based on market conditions and customer needs. Therefore, the statement is false.Rate this question:
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- 29.
Understanding ethnic backgrounds and household income is part of market segmentation.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Understanding ethnic backgrounds and household income is part of market segmentation because it helps businesses identify and target specific customer groups based on their cultural preferences and purchasing power. By segmenting the market based on ethnicity and income, businesses can tailor their marketing strategies, products, and services to better meet the needs and preferences of different customer segments. This can lead to more effective marketing campaigns, higher customer satisfaction, and increased sales.Rate this question:
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- 30.
Psychographics is about similar lifestyles, shared attitudes, values, and opinions.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Psychographics refers to the study and classification of people based on their lifestyles, attitudes, values, and opinions. It focuses on understanding the psychological characteristics of individuals and how they influence their behavior and decision-making processes. Therefore, the statement that "Psychographics is about similar lifestyles, shared attitudes, values, and opinions" is true, as it accurately describes the main concept of psychographics.Rate this question:
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- 31.
Which of the following purchases would be made with discretionary income?
- A.
Fruit and vegetables
- B.
Underwear and socks
- C.
A three bedroom house
- D.
Internet subscription
Correct Answer
D. Internet subscriptionExplanation
Discretionary income refers to the money that is left after paying for necessary expenses such as food, clothing, and housing. It is the income that can be used for non-essential purchases or luxuries. In this case, an internet subscription falls under discretionary income as it is not a basic necessity like food or shelter. Therefore, it can be considered as a purchase made with discretionary income.Rate this question:
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- 32.
The Raven Potteryware company decided to sell coffee mugs in the local coffee shop. What type of marketing decision was this?
- A.
Price
- B.
Place
- C.
Promotion
- D.
Product
Correct Answer
B. PlaceExplanation
The decision to sell coffee mugs in the local coffee shop is an example of a "place" marketing decision. This decision involves determining the most appropriate location or channel for distributing and selling the product. By choosing to sell the coffee mugs in the local coffee shop, the Raven Potteryware company is strategically placing their product where their target customers are likely to be, increasing the chances of making sales and reaching their intended audience.Rate this question:
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- 33.
A combination of geographic, demographic, and psychographic data about a group of people can be used to create a customer ______________.
- A.
Line up
- B.
Order system
- C.
Profile
- D.
Cylinder
Correct Answer
C. ProfileExplanation
A combination of geographic, demographic, and psychographic data about a group of people can be used to create a customer profile. This profile would provide insights into the characteristics, preferences, and behaviors of the target audience, helping businesses tailor their marketing strategies and offerings to better meet their customers' needs and desires.Rate this question:
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- 34.
Characteristics such as age, gender, ethnic background, income are under what group?
- A.
Market segmentation
- B.
Disposable income
- C.
Demographics
- D.
External opportunities
Correct Answer
C. DemograpHicsExplanation
Demographics refer to characteristics such as age, gender, ethnic background, and income. These factors are used to categorize and understand different groups of people within a population. By analyzing demographics, businesses can effectively target their products or services to specific consumer segments. Therefore, demographics are a key component of market segmentation, which involves dividing a market into distinct groups based on various characteristics to tailor marketing strategies and meet customer needs.Rate this question:
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- 35.
Which of the following purchases would be made with disposable income?
- A.
Cable TV
- B.
Fruit and vegetables
- C.
Internet subscription
- D.
Manicure
Correct Answer
B. Fruit and vegetablesExplanation
Disposable income refers to the amount of money that is available to an individual or household after taxes and essential expenses have been deducted. In this context, fruit and vegetables can be considered as purchases made with disposable income because they are not essential expenses and are typically bought using the remaining money after all necessary expenses have been taken care of. Cable TV, internet subscription, and manicure are not considered essential expenses and are typically categorized as discretionary spending, which may or may not be made with disposable income depending on an individual's financial situation.Rate this question:
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- 36.
What does the "O" stand for in SWOT?
- A.
Objectives
- B.
Opinion
- C.
Opportunity
- D.
Original
Correct Answer
C. OpportunityExplanation
The "O" in SWOT stands for "opportunity". In the context of a SWOT analysis, an opportunity refers to external factors or situations that can be advantageous for a business or organization. It represents potential areas where the business can grow, expand, or take advantage of market conditions to gain a competitive edge. Identifying and capitalizing on opportunities is crucial for strategic planning and decision-making to ensure long-term success and profitability.Rate this question:
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- 37.
What is the purpose of an environmental scan?
- A.
An analysis of the environmental damage a company might cause
- B.
An analysis of business opportunities
- C.
An analysis of outside influences that may have an impact on a business
- D.
A company profile
Correct Answer
C. An analysis of outside influences that may have an impact on a businessExplanation
The purpose of an environmental scan is to analyze the outside influences that may have an impact on a business. This includes examining factors such as economic, social, political, and technological trends, as well as competitive forces and customer preferences. By conducting an environmental scan, businesses can identify potential opportunities and threats in the external environment, which can help them make informed decisions and develop effective strategies to adapt and thrive in a changing business landscape.Rate this question:
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- 38.
What are the components of a SWOT analysis?
- A.
Analysis of strengths, weaknesses, opportunities, and tactics
- B.
Price, promotion, place, and product
- C.
Analysis of strengths, weaknesses, opportunities, and threats
- D.
Analysis of the competition
Correct Answer
C. Analysis of strengths, weaknesses, opportunities, and threatsExplanation
The correct answer is analysis of strengths, weaknesses, opportunities, and threats. A SWOT analysis is a strategic planning tool used to evaluate an organization's internal strengths and weaknesses, as well as external opportunities and threats. By analyzing these four components, businesses can gain insights into their current position and make informed decisions about future strategies and actions. This analysis helps identify areas of improvement, potential risks, and potential opportunities for growth.Rate this question:
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- 39.
What is the marketing plan?
- A.
An executive summary
- B.
Sales forecast
- C.
A set of performance standards
- D.
A written document that describes a company's marketing activities
Correct Answer
D. A written document that describes a company's marketing activitiesExplanation
The marketing plan is a written document that describes a company's marketing activities. It outlines the strategies, goals, and tactics that will be used to promote and sell a product or service. This document typically includes market research, target audience analysis, pricing strategies, promotional activities, and distribution channels. The marketing plan serves as a roadmap for the company's marketing efforts and helps ensure that all team members are aligned and working towards the same objectives.Rate this question:
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Apr 21, 2023Quiz Edited by
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Dec 10, 2013Quiz Created by
Tcarteronw
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