Question 1

A measure of the market value of all officially recognized final goods and services produced within a country in a given period is referred to as
A)the balance of trade.
B)gross domestic product.
C)the consumer price index.
D)the currency exchange rate.
E)purchasing power parity.

Accepted Answer

Gross domestic product (GDP) is a measure of the market value of all officially recognized final goods and services produced within a country in a given period of time, typically a year. It is used as an indicator of the size and health of a country's economy.

Question 2

Overall GDP is the most common gauge of
A)the balance of trade between countries.
B)fluctuations in currency exchange rates.
C)the consumer price index and purchasing power parity.
D)the overall expansion or contraction of an economy.
E)unemployment and future job forecasting.

Accepted Answer

GDP stands for Gross Domestic Product and it measures the overall expansion or contraction of an economy by indicating the total value of goods and services produced within a country's borders during a certain period of time (usually a year). It is used to assess the health and growth of a country's economy and is a key indicator for policymakers, investors, and businesses.

Question 3

Which of the following is the accurate cause of a recession?
A)The consumer price index falls below the average yearly standard.
B)GDP declines for two or more consecutive quarters.
C)Inflation rises for two or more consecutive quarters.
D)The unemployment rate declines for two or more consecutive quarters.
E)Inflation and unemployment both rise consecutively.

Accepted Answer

A recession is typically defined as a period of significant economic decline, often accompanied by rising unemployment rates and falling consumer spending. One common indicator used to officially declare a recession is a decline in GDP (gross domestic product) for two or more consecutive quarters. Therefore, option B is the accurate cause of a recession.

Question 4

Karlee needed to pick up some toothpaste from the store.She was surprised to find that the store was out of her usual brand,Crest.Rather than go to another store,she decided to buy a tube of Colgate instead.In this example,Colgate represents
A)an unsought good.
B)a substitute product.
C)lateral competition.
D)indirect competition.
E)a disposable product.

Accepted Answer

Colgate is a substitute product for Crest, which means that it serves the same purpose and can be used instead of the usual brand.

Question 5

Compare the following product offerings.Which is an example of indirect competition?
A)Burger King and Subway
B)Crest and Colgate toothpaste
C)Coca-Cola and Pepsi
D)Sirius XM radio and Pandora
E)Dunkin' Donuts and Krispy Kreme Doughnuts

Accepted Answer

The answer of Compare the following product offerings.Which is an...

Question 6

Daniel is looking to buy a hybrid vehicle because he is noticing that the price of gasoline continues to rise compared to years past.The rise in the price of gasoline is most likely a result of
A)deflation.
B)a recession.
C)a rise in GDP.
D)inflation.
E)an increase in purchasing power.

Accepted Answer

Inflation refers to a general increase in the prices of goods and services over time, which reduces the purchasing power of money. The rise in the price of gasoline is a classic example of inflation, as it reflects an increase in the cost of producing and distributing gasoline. As a result, consumers like Daniel are motivated to find alternative modes of transportation that are more cost-effective and environmentally friendly, such as hybrid vehicles.

Question 7

A situation in which products that perform the same function compete against one another is referred to as
A)indirect competition.
B)functional competition.
C)lateral competition.
D)primary competition.
E)direct competition.

Accepted Answer

Direct competition occurs when products or services perform the same function and compete against each other in a similar market. This is different from indirect competition, where different products or services are competing for the same consumer dollars, but do not necessarily perform the same function. Functional competition, lateral competition, and primary competition are not commonly used terms in marketing.

Question 8

Compare the following product offerings.Which is the best example of direct competition?
A)carpet cleaning stores and hardware stores that rent carpet cleaners
B)Google and Yahoo
C)Coca-Cola and Arizona Iced Tea
D)a pizza restaurant and a fried chicken restaurant
E)Burger King and Subway

Accepted Answer

Google and Yahoo are both search engines, making them direct competitors as they offer similar services to the same target market.

Question 9

Compare the following statements to determine which one accurately depicts how income is distributed across the U.S.population.
A)Over the past several decades,there has been a robust shift in the lowest wage earners moving upward to the middle class.
B)The top wage earners of the U.S.population are earning only a small percentage of the country's adjusted gross income.
C)Income for the middle class in the United States has consistently grown faster than any other wage-earning bracket.
D)Over the past several decades,income for the highest wage earners grew at a much quicker pace than for households in the bottom wage-earning bracket.
E)Over the past several decades,there has been little shift in any of the wage-earning brackets of the U.S.population.

Accepted Answer

According to multiple sources, including the Congressional Budget Office, income for the highest wage earners in the U.S. has grown at a much faster rate than for households in the bottom wage-earning bracket over the past several decades. This has led to an increase in income inequality and a widening gap between the rich and the poor. Option A is not accurate, as there has not been a robust shift of low-wage earners to the middle class. Option B is partially accurate, as the top wage earners do earn a smaller percentage of the country's adjusted gross income compared to some other countries, but this statement alone does not accurately depict income distribution across the U.S. population. Option C is also not entirely accurate, as income growth rates have varied among different wage-earning brackets over time. Option E is not accurate, as there has been some shift in income distribution, particularly with the growth in income inequality.

Question 10

A sudden drop in the average consumer income would be an example of which external force affecting the marketing environment?
A)legal
B)sociocultural
C)technological
D)political
E)economic

Accepted Answer

A sudden drop in the average consumer income is a clear example of an economic force affecting the marketing environment. It can significantly impact consumer behavior and purchasing power, which, in turn, can affect marketing strategies and tactics. Other external forces, such as legal, sociocultural, technological, and political, do not directly relate to changes in consumer income.

Question 11

A firm that is engaged in environmental scanning is monitoring developments outside of the firm's control in order to detect and respond to
A)the strengths of the firm.
B)threats and opportunities.
C)the weaknesses of the firm.
D)market opportunities associated with environmental concerns.
E)environmental issues associated with the firm's operations.

Accepted Answer

Environmental scanning is the process of monitoring developments and changes in the environment outside the firm's control to detect and respond to potential threats and opportunities. Therefore, option B is the correct answer as it directly relates to the purpose of environmental scanning. Option A is incorrect as it talks about strengths, which are internal factors. Option C is incorrect as it talks about weaknesses, which are also internal factors. Option D is not entirely correct as it only focuses on market opportunities related to environmental concerns and does not include threats. Option E is incorrect as it talks about environmental issues associated with the firm's operations, which is more internal-focused and not the main purpose of environmental scanning.

Question 12

Monitoring developments outside of the firm's control with the goal of detecting and responding to threats and opportunities is called
A)competitive analysis.
B)environmental scanning.
C)data mining.
D)brand positioning.
E)market assessment.

Accepted Answer

Environmental scanning involves monitoring the external environment to identify threats and opportunities for a firm. This includes factors outside of the firm's control such as economic trends, technological advancements, and political changes. Competitive analysis focuses specifically on analyzing competitors, while data mining involves analyzing large sets of data to identify patterns and insights. Brand positioning and market assessment are more focused on the firm's internal marketing strategies.

Question 13

A measure of how optimistic consumers are about the overall state of the economy and their own personal finances is referred to as
A)purchasing confidence.
B)consumer confidence.
C)consumer expectations.
D)purchasing power.
E)market confidencE.

Accepted Answer

Consumer confidence refers to the level of optimism or pessimism among consumers regarding the overall state of the economy and their personal financial situation. It is a measure of how likely consumers are to spend money, which in turn impacts economic growth. A higher level of consumer confidence usually translates to increased spending and economic activity.

Question 14

If the cost of groceries goes up by 10 percent this year,the amount of groceries you can buy for $50 decreases by that same 10 percent.This is an example of
A)a decline in GDP.
B)a decrease in purchasing power.
C)a recession.
D)deflation.
E)a rise in GDP.

Accepted Answer

When the cost of goods increases, the purchasing power of money decreases. In this case, the amount of groceries you could buy for $50 decreases by 10%, indicating a decrease in purchasing power. This is not necessarily indicative of a decline in GDP, a recession or deflation, and there is no evidence of a rise in GDP in the given scenario.

Question 15

Which of the following is the correct definition of inflation?
A)the rise in the rate of unemployment due to a slowing economy
B)the rise in the amount of goods and services that can be purchased for a specific amount of money
C)an increase in the general level of prices of products in an economy over a period of time
D)a decline in consumer confidence about the overall state of the economy and their own personal finances
E)a decline in gross domestic product for two or more consecutive quarters

Accepted Answer

Inflation is an increase in the general level of prices of products in an economy over a period of time. Option A refers to unemployment, option B refers to deflation, option D refers to consumer confidence, and option E refers to recession.

Question 16

Direct competition is also known as
A)in-house competition.
B)market competition.
C)lateral competition.
D)brand competition.
E)substitute product competition.

Accepted Answer

Direct competition, also known as brand competition, occurs when businesses offer similar products or services to the same target market.

Question 17

The six major external factors that influence the marketing environment of a firm are economic,demographic,sociocultural,technological,legal,and
A)environmental.
B)financial.
C)international.
D)domestic.
E)political.

Accepted Answer

The six major external factors that influence the marketing environment of a firm are economic, demographic, sociocultural, technological, legal, and political. The best choice for the seventh factor is political as it includes government policies, regulations, and political stability, which can significantly impact a firm's marketing activities.

Question 18

Indirect competition occurs when
A)consumers choose between two products that perform the same function.
B)a company introduces a new product to its product line.
C)products are marketed to a new consumer segment.
D)products provide alternate solutions to the same market.
E)consumers purchase products that they did not intend to buy.

Accepted Answer

Indirect competition occurs when different products offer alternate solutions to the same market, rather than competing directly with each other. For example, a gas car and an electric car compete indirectly as they both offer solutions for transportation, but in different ways.

Question 19

The political,economic,demographic,sociocultural,technological,and legal factors that affect a company's ability to meet its marketing goals are all part of
A)a company's demographic characteristics.
B)a company's internal forces.
C)the marketing environment.
D)the organizational environment.

Accepted Answer

The marketing environment consists of external forces that impact a company's ability to meet its marketing goals, including political, economic, demographic, sociocultural, technological, and legal factors. Therefore, the correct choice is C.

Question 20

Which of the following is not considered to be a demographic characteristic?
A)education level
B)gender
C)ethnicity
D)consumer confidence
E)age

Accepted Answer

Consumer confidence is not a demographic characteristic as it relates to individuals' beliefs and perceptions about the economy and their personal finances, rather than their inherent traits such as age, gender, ethnicity, and education level.

Quiz 3: The Global Environment

A measure of the market value of all officially recognized final goods and services produced within a country in a given period is referred to as

Overall GDP is the most common gauge of

Which of the following is the accurate cause of a recession?

Karlee needed to pick up some toothpaste from the store.She was surprised to find that the store was out of her usual brand,Crest.Rather than go to another store,she decided to buy a tube of Colgate instead.In this example,Colgate represents

Compare the following product offerings.Which is an example of indirect competition?

Daniel is looking to buy a hybrid vehicle because he is noticing that the price of gasoline continues to rise compared to years past.The rise in the price of gasoline is most likely a result of

A situation in which products that perform the same function compete against one another is referred to as

Compare the following product offerings.Which is the best example of direct competition?

Compare the following statements to determine which one accurately depicts how income is distributed across the U.S.population.

A sudden drop in the average consumer income would be an example of which external force affecting the marketing environment?

A firm that is engaged in environmental scanning is monitoring developments outside of the firm's control in order to detect and respond to

Monitoring developments outside of the firm's control with the goal of detecting and responding to threats and opportunities is called

A measure of how optimistic consumers are about the overall state of the economy and their own personal finances is referred to as

If the cost of groceries goes up by 10 percent this year,the amount of groceries you can buy for $50 decreases by that same 10 percent.This is an example of

Which of the following is the correct definition of inflation?

Direct competition is also known as

The six major external factors that influence the marketing environment of a firm are economic,demographic,sociocultural,technological,legal,and

Indirect competition occurs when

The political,economic,demographic,sociocultural,technological,and legal factors that affect a company's ability to meet its marketing goals are all part of

Which of the following is not considered to be a demographic characteristic?