Deck 6: The Ethics of Consumer and Marketing

Question 1

Even though advertizing issues are complex, the must include:

A) Social effects
B) Effects on Desire
C) Effects on Belief
D) B & C
E) All of the above

Answer 1

D

Question 2

The consumers who think ahead, consider, and watch every penny they spend, knowing how their choices will affect their preferences are known as:

A) Irrational utility minimizers
B) Rational utility maximizers
C) Rational consumption maximizers
D) All the above

Answer 2

B

Question 3

The most common criticism of advertising concerns its effect on the consumer's beliefs.

Answer 3

True

Question 4

A study by consumer reports found errors in 43 percent of the credit reports that they analyzed.

Question 5

Research has shown people are irrational and inconsistent when weighing choices based on probability estimates of future costs and payoffs.

Question 6

Critics to the market approach respond that the benefits of free markets are obtained only when the markets have all of the seven defining characteristics. Several of these are:

A) There are numerous buyers and sellers.
B) Everyone can freely enter and exit the market.
C) The market is unregulated.
D) All the above
E) A & B

Question 7

Credit Solutions has been sued by the attorney general of five states

Question 8

The due care theory of the manufacturer's duties to consumers is based on the idea that consumers and sellers do not meet as equals and that the consumer's interests are particularly vulnerable to being harmed by the manufacturer, who has a knowledge and an expertise that the consumer lacks.

Question 9

Although there are some advertisements that are intended to manipulate, such advertisements do not violate the consumer's right to be treated as a free and equal rational being.

Question 10

Which are the three main credit reporting companies?

A) Experian, Credex, and Your Credit
B) Experian, Real Credit, and Credibility
C) Experian, Equifax and Trans Union LLC
D) Experian, Exact and Specialty

Question 11

In a narrow sense, the right to privacy can be defined as the right of persons to determine what, to whom, and how much information about themselves will be disclosed to other parties.

Question 12

In the Market Approach to consumer protection, if consumers do not place a high value on safety (or are unwilling to pay for it), then it is wrong to force them to accept higher levels of safety through regulation.

Question 13

The theory of business' duties to consumers claims that a business has four main moral duties: the basic duty of (a) complying with the terms of the sales contract, and the secondary duties of (b) disclosing the nature of the product, (c) avoiding misrepresentation, and (d) avoiding the use of duress and undue influence.

A) Contractual
B) Commercial
C) Competitive
D) Consumptive