Deck 6: Consumers

Question 1

In advertising, a claim that is unsupported by evidence is

A)An opinion
B)An exaggeration
C)A false promise
D)A weasel claim

Answer 1

B

Question 2

Ads that can be understood in two or more ways are

A)Ambiguous
B)Illegal
C)Immoral
D)Concealing

Answer 2

A

Question 3

The question of what a fair price is

A)Is easy to answer
B)Probably lacks a precise answer
C)Is a confused question
D)Best left to economists

Answer 3

B

Question 4

Iacocca used to say "Safety doesn't…"

A)Hurt
B)Sell
C)Corrupt
D)Produce

Question 5

Words used to evade direct statements are

A)Ferret words
B)Hedgehog words
C)Weasel words
D)Mandrake words

Question 6

Until was it illegal for a manufacturer and a retailer to fix prices?

A)1876
B)1965
C)1987
D)2007

Question 7

When manufacturers and retailers agree to set prices, this is

A)Horizontal price fixing
B)Vertical price fixing
C)Backwards price fixing
D)Lowered price fixing

Question 8

In 2009 the FDA was empowered to regulate

A)Alcohol
B)Candy
C)Pornography
D)Cigarettes

Question 9

Cigarette fires are responsible for how many serious injuries a year?

A)2000
B)4000
C)6000
D)7000

Question 10

A seller's exploitation of a short-term situation in which buyers have few purchase options for a much-needed product is called

A)Price gouging
B)Racketeering
C)Prix fixe
D)Worker exploitation

Question 11

Had air bags been standard equipment in 1974, how many deaths might have been prevented?

A)70,000
B)80,000
C)90,000
D)100,000

Question 12

The claim that a product is fit for its ordinary use is

A)An implied warranty
B)An explicit warranty
C)A condition of sale
D)A consumer risk

Question 13

Advertising that communicates at a level beneath conscious awareness is

A)Deceptive
B)Weasel worded
C)Illegal
D)Subliminal

Question 14

L'Occitane labels its products in

A)Sign language
B)Braille
C)French
D)English

Question 15

A persuasive effort aimed primarily at emotion is a

A)Weasel appeal
B)Psychological appeal
C)Exaggerated appeal
D)Puffed-up appeal

Question 16

The court case that established consumers' rights to sue the manufacturer of products was

A)Roe v.Wade
B)Griggs v.Palmer
C)MacPherson v.Buick Motor Car
D)Brown v.Board

Question 17

Every year, consumer products electrocute approximately

A)100 people a year
B)200 people a year
C)400 people a year
D)600 people a year

Question 18

In 1972 Congress passed the

A)Consumer Produce Recall Act
B)Consumer Product Safety Act
C)Consumer Recall Liability Act
D)Consumer Product Liability Act

Question 19

When did a government agency begin testing candy for its potential to choke children?

A)1987
B)1997
C)2000
D)2003

Question 20

When a "economy size" product is sold at a higher price than their smaller counterparts they are being subject to

A)Extra taxes
B)A quantity surcharge
C)Fraud
D)Limited cost savings

Question 21

Consumers cannot sue manufacturers of defective products.

Question 22

The decision in FTC v.Standard Education led the FTC to apply which standard liberally?

A)The ignorant person standard
B)The informed consumer standard
C)The reasonable person standard
D)The ignorant retailer standard

Question 23

Every year children under twelve spend

A)$20 billion
B)$40 billion
C)$60 billion
D)$80 billion

Question 24

Every year lawn mowers send 78,000 consumers to emergency rooms.

Question 25

The Federal Trade Commission was created in

A)1876
B)1890
C)1914
D)1954

Question 26

Advertising subsidizes the media.

Question 27

Every year teenagers spend $172 billion.

Question 28

The doctrine of strict product liability holds that the manufacturer of a product must compensate its users for injuries suffered because of its defective condition.

Question 29

The number of automobile recalls per year has doubled since 1993.

Question 30

Kenneth Arrow invented the dependence effect.

Question 31

In 2008 California effectively outlawed retail sales of raw milk.

Question 32

Exposure to television ads is associated with childhood obesity.

Question 33

Kenneth Galbraith rejected the economists' faith in consumer sovereignty.

Question 34

Manufacturers can defend against charges of strict product liability by showing that they were not negligent in the manufacturing process.

Question 35

The Federal Trade Commission was created as

A)An antitrust weapon
B)An investment watchdog
C)A consumer advice bureau
D)A body for overseeing interstate commerce

Question 36

Food companies spend $16 billion a year marketing to children.