Question 1

According to the Rostow Model, the United States would be classified as being in the "drive-to-maturity" stage.

Accepted Answer

According to the Rostow Model, the United States would be classified as being in the high mass consumption stage.

Question 2

According to the Rostow model of economic development, in the take-off stage, modern technology is fully adopted in all economic activity and new leading sectors have emerged.

Accepted Answer

In the take-off stage of Rostow's model, modern technology is fully adopted in all economic activity and new leading sectors have emerged.

Question 3

Lower-class consumers are the most likely to be affected by economic slowdowns since part-time and lower-level jobs are the most likely to be cut.

Accepted Answer

Lower-class consumers often rely on part-time and lower-level jobs, which are more vulnerable to cuts during economic slowdowns, impacting their financial stability.

Question 4

The greatest expense for all income households, except high-income households, is transportation.

Accepted Answer

Housing is the greatest expense for all income levels.

Question 5

Expenses for necessities, such as food and personal care products and services, remains constant as a proportion of income as household income increases.

Accepted Answer

These expenses tend to decrease as a proportion of income as household income rises, allowing higher-income individuals to spend more on other things.

Question 6

Topography is important in terms of international trade and commerce because it determines access to the market and affects distribution decisions.

Accepted Answer

Topography influences transportation routes, infrastructure development, and accessibility, impacting trade logistics and market access.

Question 7

Hydrology is important in terms of international trade and commerce because it impacts a country's level of economic development.

Accepted Answer

Hydrology is important in terms of international trade and commerce because it impacts a country's level of economic development: it determines access to markets. Landlocked countries have greater development impediments than countries that have water access.

Question 8

The primary driver of change in today's society is advances in technology.

Accepted Answer

Technology is an important driver of change in society.

Question 9

In the United States, the federal government spends the most on research and development.

Accepted Answer

The federal government spent $133.78 billion in 2006, compared to over $200 billion spent by industry.

Question 10

A poor economic performance and forecasts of poor economic performance are likely to lead to a greater level of risk for companies because of lower rates of inflation and lower unemployment rates.

Accepted Answer

A poor economic performance and forecast are likely to lead to greater levels of risk for companies. Of particular concern are high inflationary rates and high unemployment rates, both of which could lead to higher taxes, regulatory restrictions, an increasingly active labor movement, and even political instability.

Question 11

A poor economic performance is likely to lead to higher inflation and higher unemployment, which in turn can lead to higher taxes, regulatory restrictions, an increasingly active labor movement, and even political instability.

Accepted Answer

If economic performance is poor, of particular concern are high inflationary rates and high unemployment rates, both of which could lead to higher taxes, regulatory restrictions, an increasingly active labor movement, and even political instability.

Question 12

Changes in the governing party of a national government creates risks for companies because this change will usually trigger a change in policies relating to taxes and industry regulations.

Accepted Answer

Companies have great concerns when there are changes in the governing party of a national government, as they are likely to face increased risk: this change will usually trigger a change in policies relating to taxes and industry regulations.

Question 13

The environment of the firm, which includes the company, its consumers, suppliers, distributors, and other facilitators of the marketing function and competition is the

Accepted Answer

The microenvironment refers to the immediate environment surrounding a firm, including entities like consumers, suppliers, distributors, and competitors that directly affect its operations.

Question 14

The environment of the firm, which includes the socio-demographic and cultural environment, the economic and natural environment, the political environment, and the technological environment is the

Accepted Answer

The macroenvironment encompasses broad external factors that affect all firms, including socio-demographic, cultural, economic, natural, political, and technological environments.

Question 15

The microenvironment consists of all of the following except

Accepted Answer

The microenvironment does not include natural resources; that is part of the macroenvironment.

Question 16

Within the company itself, the marketing manager or marketing department will be involved in all of the following arenas except

Accepted Answer

The marketing department typically does not engage in battles for natural resources, as this is more relevant to operations or supply chain departments.

Question 17

On the average, most firms spend around _____ of their sales revenue on the marketing function.

Accepted Answer

Most firms typically allocate around 10% of their sales revenue to marketing activities, though this can vary by industry and company size.

Question 18

Distributors are middlemen whose task is to

Accepted Answer

Distributors are responsible for ensuring that products are distributed conveniently, timely, and safely to consumers, acting as intermediaries between manufacturers and retailers or consumers.

Question 19

For a dine-in restaurant such as Applebee's, a primary competitor that would be placed in the inner circle of a layered diagram would be

Accepted Answer

A primary competitor of Applebee's, one that would be placed in the inner circle of a layered diagram would be TGI Friday's.

Question 20

The macroenvironment consists of all of the following except

Accepted Answer

The macroenvironment includes broad external factors like socio-demographic, cultural, and technical environments, but the competitive environment is part of the microenvironment, which focuses on immediate factors affecting a company.

Quiz 2: The Environment of Marketing in the Twenty-First Century