Question 1

Discretionary income is a family's

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities.

Question 2

Discretionary income is defined as

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities.

Question 3

An app for the iPhone that includes voice directions for a built-in GPS system can be helpful in finding a motel that is "off the beaten track." What is the primary economic need being satisfied by this app?

Accepted Answer

Most consumers appreciate firms that offer products that are designed to work better,require less service,or last longer.Here,the iPhone app is satisfying efficiency in operation or use.

Question 4

What is left of income after paying for taxes and paying for necessities?

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities.

Question 5

At Home Depot,a customer can purchase a gallon of one-coat paint that contains the ingredients for both a primer and a color.What is the primary economic need being satisfied by this type of paint?

Accepted Answer

Economic needs are concerned with making the best use of a consumer's time and money,as the consumer judges it.Here,the paint is satisfying economy of purchase or use.

Question 6

A magazine ad for GEICO car insurance shows the GEICO gecko lying down while the copy reads,"Don't take high car insurance rates lying down." What primary economic need is being satisfied in this magazine ad?

Accepted Answer

Economic needs are concerned with making the best use of a consumer's time and money,as the consumer judges it.Here,the magazine ad is satisfying economy of purchase.

Question 7

A young working couple earned $55,000 last year.They paid $16,000 in taxes and $20,000 in rent,food,insurance and other necessities.What was their discretionary income for the year?

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities: $55,000 − $16,000 − $20,000 = $19,000.

Question 8

In 2015,________ percent of households reported an income of less than $25,000.

Accepted Answer

In 2015,22 percent of households reported an income of less than $25,000.

Question 9

The economists' view of buyers

Accepted Answer

Most economists assume that consumers are economic buyers-people who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money.Hence,none of the provided answers is correct.

Question 10

Ginny Paulson was just promoted to marketing manager for her company.She also gets a big raise with the promotion.Because Ginny's discretionary income will increase,which of the following products/services is most likely to see additional spending?

Accepted Answer

A family's purchase of "luxuries" comes from discretionary income-what is left of income after paying taxes and paying for necessities.A smart TV is a luxury.

Question 11

In a television commercial for Maytag appliances,the spokesperson "Old Lonely" acts bored because no one is calling him to schedule a repair of their appliances.What is the primary economic need being illustrated in this TV ad?

Accepted Answer

Most consumers appreciate firms that offer them improved economic value for the money they spend.Products can be designed to work better,require less service,or last longer.This TV ad is illustrating dependability in use.

Question 12

As the owner of a women's clothing store,Caroline Lipscomb has an income of $75,000.She pays $30,000 per year in taxes and another $17,000 per year for grocery bills,home mortgage payments,and car payments.Last year she went on a holiday to Italy and spent an additional $4,000.What was Caroline's discretionary income last year?

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities: $75,000 − $30,000 − $17,000 = $28,000.

Question 13

Keith McPherson earned $20,000 last year as a carpenter.He paid $6,000 for food,rent,medical expenses,and other "necessities." There was little construction work in February,so he took a trip to the Caribbean and spent $4,000.What was Keith's discretionary income last year?

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities.Information on Keith McPherson's taxes is not given here.

Question 14

A young working couple earned $50,000 last year.Of that,they paid $16,000 in taxes and $15,000 in rent,food,insurance and other necessities.Their discretionary income for the year was

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities: $50,000 − $16,000 − $15,000 = $19,000.

Question 15

A young working couple earned $35,000 last year and paid $10,000 in taxes.They spent $13,000 on rent,food,insurance,and other "necessities." What is their discretionary income?

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities: $35,000 − $10,000 − $13,000 = $12,000.

Question 16

Misty Hancock is a sales rep for a computer producer.Her salary last year was $30,000,and she earned another $5,000 in sales commissions.She paid $6,000 in taxes,and spent $8,000 on food,housing,a car,and other "necessities." What is Misty's discretionary income?

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities: $30,000 + $5,000 − $6,000 − $8,000 = $21,000.

Question 17

As the owner of a Bluetooth specialties store,Alicia Fountainbleau has an income of $72,000.She pays $30,000 per year in taxes and another $22,000 per year in grocery bills,house mortgage,and car payment.Last year she spent an additional $4,000 on a two-week vacation at a Club Med in Rio de Janeiro.What was Alicia's discretionary income last year?

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities: $72,000 − $30,000 − $22,000 = $20,000.

Question 18

The amount of income a family has left after paying taxes and paying for its necessities is called its ________ income.

Accepted Answer

Discretionary income is what is left of income after paying taxes and paying for necessities.

Question 19

A busy mom stops at a 7-Eleven store on the way home from work to purchase some bread,milk,and ice cream.What primary economic need is being satisfied by the 7-Eleven?

Accepted Answer

Many firms adjust their marketing mixes for target markets that place a high value on convenience.The example illustrates the economic need of convenience.

Question 20

The median family income in the U.S.in 2015 was a little over

Accepted Answer

In 2015,the median income-where half the households earned more and half earned less-was $56,516.

Quiz 5: Final Consumers and Their Buying Behavior

Discretionary income is a family's

Discretionary income is defined as

An app for the iPhone that includes voice directions for a built-in GPS system can be helpful in finding a motel that is "off the beaten track." What is the primary economic need being satisfied by this app?

What is left of income after paying for taxes and paying for necessities?

At Home Depot,a customer can purchase a gallon of one-coat paint that contains the ingredients for both a primer and a color.What is the primary economic need being satisfied by this type of paint?

A magazine ad for GEICO car insurance shows the GEICO gecko lying down while the copy reads,"Don't take high car insurance rates lying down." What primary economic need is being satisfied in this magazine ad?

A young working couple earned $55,000 last year.They paid $16,000 in taxes and $20,000 in rent,food,insurance and other necessities.What was their discretionary income for the year?

In 2015,________ percent of households reported an income of less than $25,000.

The economists' view of buyers

Ginny Paulson was just promoted to marketing manager for her company.She also gets a big raise with the promotion.Because Ginny's discretionary income will increase,which of the following products/services is most likely to see additional spending?

In a television commercial for Maytag appliances,the spokesperson "Old Lonely" acts bored because no one is calling him to schedule a repair of their appliances.What is the primary economic need being illustrated in this TV ad?

Keith McPherson earned $20,000 last year as a carpenter.He paid $6,000 for food,rent,medical expenses,and other "necessities." There was little construction work in February,so he took a trip to the Caribbean and spent $4,000.What was Keith's discretionary income last year?

A young working couple earned $50,000 last year.Of that,they paid $16,000 in taxes and $15,000 in rent,food,insurance and other necessities.Their discretionary income for the year was

A young working couple earned $35,000 last year and paid $10,000 in taxes.They spent $13,000 on rent,food,insurance,and other "necessities." What is their discretionary income?

Misty Hancock is a sales rep for a computer producer.Her salary last year was $30,000,and she earned another $5,000 in sales commissions.She paid $6,000 in taxes,and spent $8,000 on food,housing,a car,and other "necessities." What is Misty's discretionary income?

The amount of income a family has left after paying taxes and paying for its necessities is called its ________ income.

A busy mom stops at a 7-Eleven store on the way home from work to purchase some bread,milk,and ice cream.What primary economic need is being satisfied by the 7-Eleven?

The median family income in the U.S.in 2015 was a little over