Question 1

Describe and compare the three basic levels of economic development.

Accepted Answer

The answer of Describe and compare the three basic levels...

Question 2

In a monopolistic competition market structure, each seller is very conscious of other sellers' actions, since there are very few sellers in the industry.

Accepted Answer

In a monopolistic competition market structure, there are many sellers, each producing differentiated products, which reduces the interdependence on other sellers' actions compared to markets with fewer sellers, like oligopolies.

Question 3

The gross domestic product (GDP) is the overall pattern of changes or fluctuations of an economy, such as prosperity, recession, and recovery.

Accepted Answer

Gross Domestic Product (GDP) measures the total value of all goods and services produced over a specific time period within a country's borders; it does not describe the pattern of changes or fluctuations in the economy.

Question 4

Consumers pay for necessities out of their discretionary income.

Accepted Answer

Consumers pay for necessities out of their non-discretionary income, which is the portion of their income that goes toward mandatory expenses such as housing, food, and transportation. Discretionary income is the money left over after mandatory expenses are paid and can be used for non-essential items or experiences.

Question 5

On the Upper West Side of Manhattan, there are hundreds of independent restaurants offering different specialties, services, and prices. The market for restaurants in this neighborhood is in a state of monopolistic competition.

Accepted Answer

Monopolistic competition exists when there are many firms in the market, each selling a similar but differentiated product. In this case, there are many restaurants offering different specialties, services, and prices, making it an example of monopolistic competition.

Question 6

U.S. marketing campaigns that stress the desirability of "Made in America" products are most likely to appeal to ________ U.S. consumers.

Accepted Answer

Ethnocentric consumers tend to have a strong preference for domestically produced products and may view them as superior to imports. Therefore, marketing campaigns that emphasize "Made in America" are most likely to appeal to these consumers. Individualist and collectivist consumers may also have preferences for domestic products, but their decision-making is often influenced more by personal values and social norms rather than national identity. Normed and naturalized consumers are not relevant to this question.

Question 7

In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of seafood products on one street. An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price. This is an example of what type of market?

Accepted Answer

This scenario is an example of perfect competition, where there are many sellers in the market offering a homogeneous product, and no single seller can influence the market price.

Question 8

Poland has a growing middle class and boasts a large skilled labor force. Poland is most likely categorized as a developing country.

Accepted Answer

While Poland has made significant progress in recent years, it is still considered a developing country due to some economic and social indicators such as income inequality, levels of poverty, and access to certain resources and services. However, Poland is also considered a newly industrialized country (NIC) due to its economic growth and development of industries such as manufacturing and services.

Question 9

A country that is shifting from an agricultural based economy to an industrial based economy is known as a developing country.

Accepted Answer

Developing countries are characterized by a shift from an agricultural based economy to an industrial based economy, resulting in economic growth and development.

Question 10

Since the introduction of the iPhone, a booming market for smartphone applications has emerged. It is most accurate to say that this new opportunity was created through changes in the ________ environment.

Accepted Answer

The introduction of the iPhone was a technological change that created a new opportunity for smartphone applications.

Question 11

Kyrgyzstan is a small mountainous country with a predominantly agricultural economy. Cotton, wool, and meat are the main agricultural products and exports. Thirty-four percent of the population lives below the poverty line. Kyrgyzstan is an example of a(n) ________.

Accepted Answer

The fact that 34% of the population lives below the poverty line is indicative of a least developed country (LDC) classification. While Kyrgyzstan has made some progress in developing its economy, it still faces significant challenges related to poverty, inequality, and economic instability.

Question 12

Tupperware uses a business model that relies on women running their own businesses as agents of Tupperware. Tupperware successfully exports to China and India. Explain why these countries provide attractive markets for Tupperware.

Accepted Answer

The answer of Tupperware uses a business model that relies...

Question 13

The population of Djibouti is approximately 830,000. To serve the communication needs of this nation, there are two FM radio stations, one AM radio stations, and one television station. There are only 22,000 telephone lines in the whole country. This is a partial description of Djibouti's ________.

Accepted Answer

The description given refers to Djibouti's economic infrastructure, which includes communication and transportation systems, as well as utilities such as electricity and water. The number of radio and television stations, as well as the limited number of telephone lines, indicate the state of Djibouti's communication infrastructure.

Question 14

Per capita gross domestic product (GDP) may be a deceiving economic measure because the wealth of a country may be concentrated among just a small percentage of the population.

Accepted Answer

Per capita GDP measures the average income in a country, but it does not take into account the distribution of wealth. If a small percentage of the population controls a large portion of the country's wealth, then the average income may not accurately reflect the economic reality for the majority of people. In such cases, measures like the Gini coefficient or the Palma ratio are used to gauge income inequality.

Question 15

Oligopolies most often exist in industries that require little investment in equipment, technology, or materials to produce a product.

Accepted Answer

Oligopolies often exist in industries that require significant investment in equipment, technology, or materials, such as telecommunications, automotive, and steel production. This high level of investment creates barriers to entry for new competitors and allows a small number of dominant firms to control the market.

Question 16

One of the two purposes of laws governing businesses in the United States is to make sure that businesses compete fairly with each other.

Accepted Answer

One of the two purposes of laws governing businesses in the United States is to ensure fair competition among businesses. The other purpose is to protect the interests of consumers and the public.

Question 17

Japanese who give currency as gifts will typically wash the money before making the presentation. This is a(n) ________ in a nation of people who place high importance on cleanliness.

Accepted Answer

This is a custom that Japanese people practice when giving currency as gifts, as cleanliness is a cultural value that holds high importance in Japan.

Question 18

Foreign exchange rate is used more frequently than gross domestic product (GDP) as a measure of a country's economic health.

Accepted Answer

Gross Domestic Product (GDP) is a primary indicator used to gauge the health of a country's economy, as it represents the total dollar value of all goods and services produced over a specific time period. Foreign exchange rates, while important, mainly reflect the value of one currency against another and are influenced by various factors including economic health, but are not a direct measure of it.

Question 19

In Thailand and Turkey, most people subordinate their personal goals to those of a stable community. These countries are examples of collectivist cultures.

Accepted Answer

In collectivist cultures, individuals prioritize the goals of their community or group over their personal goals, and Thailand and Turkey are considered collectivist cultures.

Question 20

Which of the following is the best example of a cultural value?

Accepted Answer

Cultural values are beliefs and principles that a culture considers important and worth preserving. Marriage is a traditional and significant institution in many cultures, so it is a good example of a cultural value. The other options are either related to personal preferences or societal norms that may vary across cultures, and therefore may not be considered a cultural value.

Quiz 2: Global, Ethical, and Sustainable Marketing