Question 1

At the U.S. Census Bureau, gross income is referred to as

Accepted Answer

The U.S. Census Bureau refers to gross income as "money income."

Question 2

The most recent economic recession occurred when?

Accepted Answer

The most recent major economic recession was the Great Recession, which occurred from 2007 to 2009.

Question 3

The College Board reports that since 2000, college tuition and fees have increased by 160 percent while the share of family income required to pay for tuition at public four-year colleges has risen from 5 percent in 2000 to 17 percent today. This is an example of ________ condition.

Accepted Answer

This situation is an example of an inflationary condition, where the cost of college tuition and fees has significantly increased over time, outpacing the growth of family income.

Question 4

Components of a consumer's income consist of

Accepted Answer

The three components of a consumer's income are gross income (total income earned before taxes), disposable income (income available after taxes), and discretionary income (income available after taxes and necessary expenses have been paid). Therefore, option C is the correct answer. The other options do not accurately describe components of a consumer's income.

Question 5

During a recessionary period, which of the following economic behavior would be expected?

Accepted Answer

During a recession, people tend to be more cautious with their spending and are less likely to use credit due to economic uncertainty and potential job loss.

Question 6

In an inflationary economy, the cost to produce and buy products and services ________ as prices ________.

Accepted Answer

In an inflationary economy, the general price levels of goods and services increase, which means the cost to produce these goods and services increases as well. Therefore, the cost to produce and buy products and services both increase.

Question 7

During a recessionary period, which of the following economic behavior would be expected?

Accepted Answer

During a recession, consumers often cut back on spending and switch to lower-priced brands to save money.

Question 8

The money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation is referred to as

Accepted Answer

Disposable income refers to the amount of money a person has left after paying taxes, which can be used for necessities such as food, shelter, clothing, and transportation. Discretionary income, on the other hand, refers to the money left over after all necessary expenses have been paid, which can be used for non-essential purchases such as entertainment and travel. Therefore, while discretionary income is related to disposable income, it is not the same thing. The other answer choices - net income, household income, and gross income - do not specifically refer to the amount of money a person has left over after paying taxes.

Question 9

If taxes rise at a faster rate than incomes, consumers will

Accepted Answer

If taxes rise at a faster rate than incomes, consumers will have less disposable income and try to economize. This means that they will have less money to spend on goods and services, which can ultimately lead to a decrease in consumer demand and economic growth.

Question 10

A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as

Accepted Answer

A recession is a time of declining economic activity, characterized by a decrease in production, rising unemployment, and reduced consumer spending. Deflation is a decrease in the general price level of goods and services, while inflation is an increase in the general price level. Prosperity refers to a period of economic growth and expansion, and a depression is a severe and prolonged downturn in economic activity.

Question 11

In 1970, the typical U.S. household earned about $8,700. In 2016, the typical U.S. household earned about $59,039. If adjusted for inflation, the gross income of the typical U.S. household in 2016 relative to 1970 has

Accepted Answer

When adjusted for inflation, the real income of the typical U.S. household has remained relatively stable from 1970 to 2016, indicating that the increase in nominal income largely reflects inflation rather than a significant increase in purchasing power.

Question 12

Gross income refers to

Accepted Answer

Gross income refers to the total amount of money made in one year by a person, household, or family unit, before deductions for taxes and other expenses. It is the starting point for calculating income tax and other taxes.

Question 13

In ________ economy, if prices rise faster than consumer incomes, the number of items consumers can buy decreases.

Accepted Answer

In an inflationary economy, prices increase rapidly, which means that the purchasing power of consumers decreases as they can buy fewer goods with their income. This is because the increase in prices outpaces the increase in income.

Question 14

The total amount of money made in one year by a person, household, or family unit is referred to as ________ income.

Accepted Answer

Gross income refers to the total amount of money made in one year by a person, household, or family unit before any deductions or taxes.

Question 15

A decline in ________ affects discretionary income and often leads consumers to adjust their spending upwards in other categories.

Accepted Answer

Gasoline prices have a direct impact on transportation costs and, therefore, affect discretionary income. When gasoline prices increase, consumers may have less money available to spend on other categories, such as entertainment or dining out. This can lead to a shift in spending towards necessities and an increase in prices in other categories. Other options, such as interest rates or consumer confidence, may also impact spending, but they do not necessarily lead to an adjustment in spending upwards in other categories.

Question 16

Disposable income refers to

Accepted Answer

Disposable income refers to the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation. It is the amount of money available for spending and saving after paying for taxes. Option A is incorrect because disposable income is after paying for taxes, not before. Option B refers to taxes deducted, not disposable income. Option C refers to total lifetime earnings, not disposable income. Option E refers to tax-exempt spending, not disposable income.

Question 17

In ________ economy, the cost to produce and buy products and services escalates as prices increase.

Accepted Answer

In an inflationary economy, prices are rising which causes the cost to produce and buy products and services to also increase. This can lead to a decrease in the purchasing power of the currency and a decrease in overall economic growth.

Question 18

Changes in ________ have a psychological impact on consumers who tend to spend more when they feel their net worth is rising and postpone purchases when it declines.

Accepted Answer

The answer of Changes in ________ have a psychological impact...

Question 19

All of the following are economic indicators except which?

Accepted Answer

Economic indicators are statistics that provide information about the performance of the economy. Inflation, unemployment, GDP, and deflation are all examples of economic indicators. Barriers to entry, on the other hand, refer to obstacles that prevent new competitors from easily entering a market. While barriers to entry can have an impact on the economy, they are not generally considered an economic indicator.

Question 20

Approximately what percentage of U.S. households has an annual income between $25,000 and $99,999?

Accepted Answer

Approximately 51 percent of U.S.households have an annual income between $25,000 and $99,999.

Quiz 3: Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

At the U.S. Census Bureau, gross income is referred to as

The most recent economic recession occurred when?

The College Board reports that since 2000, college tuition and fees have increased by 160 percent while the share of family income required to pay for tuition at public four-year colleges has risen from 5 percent in 2000 to 17 percent today. This is an example of ________ condition.

Components of a consumer's income consist of

During a recessionary period, which of the following economic behavior would be expected?

In an inflationary economy, the cost to produce and buy products and services as prices .

During a recessionary period, which of the following economic behavior would be expected?

The money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation is referred to as

If taxes rise at a faster rate than incomes, consumers will

A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as

In 1970, the typical U.S. household earned about $8,700. In 2016, the typical U.S. household earned about $59,039. If adjusted for inflation, the gross income of the typical U.S. household in 2016 relative to 1970 has

Gross income refers to

In ________ economy, if prices rise faster than consumer incomes, the number of items consumers can buy decreases.

The total amount of money made in one year by a person, household, or family unit is referred to as ________ income.

A decline in ________ affects discretionary income and often leads consumers to adjust their spending upwards in other categories.

Disposable income refers to

In ________ economy, the cost to produce and buy products and services escalates as prices increase.

Changes in ________ have a psychological impact on consumers who tend to spend more when they feel their net worth is rising and postpone purchases when it declines.

All of the following are economic indicators except which?

Approximately what percentage of U.S. households has an annual income between $25,000 and $99,999?