Question 1

The money that remains after paying for taxes and necessities is referred to as __________.

Accepted Answer

Discretionary income is the money that remains after all the necessary expenses and taxes have been paid. It is the amount of money that a person has control over and can use for non-essential purchases or savings. Net income refers to the amount of money earned after taxes and other deductions have been taken out. Disposable income is the amount of money available after taxes have been paid, but it also includes mandatory expenses like housing and utilities. Household income refers to the total income earned by everyone in a household or family, not just one individual. Gross income is the total income earned before taxes and other deductions are taken out.

Question 2

Emily had an excellent year as a salesperson in 2013,earning $97,000.She paid $17,000 for "necessities" such as mortgage,food,and clothing.Her state and federal income taxes totaled $24,000.What was her disposable income?

Accepted Answer

Disposable income = Income - Necessities - Taxes
Disposable income = $97,000 - $17,000 - $24,000
Disposable income = $56,000
Therefore, the answer is choice B - $73,000.

Question 3

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

Accepted Answer

During a recession, consumer confidence and income are usually affected negatively, leading to a decrease in consumer spending. This is because people are more likely to save their money or spend only on essentials during a time of economic uncertainty.

Question 4

Marketers collect and use environmental information to better understand consumers.The ESRI Tapestry Segmentation tool is used to

Accepted Answer

ESRI Tapestry Segmentation provides detailed demographic and lifestyle data to help marketers understand the economic and social characteristics of different neighborhoods, allowing for comparison to national profiles.

Question 5

Discretionary income refers to

Accepted Answer

Discretionary income refers to the money that remains after paying for taxes and necessities. It is the amount available for spending on non-essential items such as entertainment, travel, and luxury goods.

Question 6

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.

Question 7

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 will likely try to economize. This means they will likely spend less money and be more cautious with their purchases.

Question 8

The recent large increase in __________ has caused consumers to adjust their spending in other categories.

Accepted Answer

Gasoline prices directly affect the cost of transportation and therefore have a significant impact on consumer spending habits. When gasoline prices increase, consumers tend to spend less on other categories in order to offset the increased cost of fuel.

Question 9

The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey.In 2010,consumers spent about 13 percent of their income on food,34 percent on __________,3.5 percent on clothes and 22 percent on transportation and health care.

Accepted Answer

The options given are education, housing, vacations, health care, and transportation. Out of these, only housing fits the blank as it is a basic necessity and often makes up a large portion of consumer expenses. The remaining options, education, vacations, and health care, usually make up a smaller portion of consumer spending, and transportation is already listed separately in the given options.

Question 10

Increases in discretionary income can occur as a result of all of the following EXCEPT:

Accepted Answer

The answer of Increases in discretionary income can occur as...

Question 11

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 taxes and other deductions are taken out. It includes all sources of income such as wages, salaries, bonuses, and investment returns.

Question 12

In 1970,the typical U.S.household earned about $8,700.In 2011,the typical U.S.household earned about $50,054.If adjusted for inflation,the gross income of the typical U.S.household in 2011 relative to 1970 has __________.

Accepted Answer

When adjusted for inflation, the purchasing power of the typical U.S. household income in 2011 is relatively similar to that in 1970, indicating stability rather than a dramatic increase or decrease.

Question 13

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

Accepted Answer

Gross income is referred to as money income at the U.S. Census Bureau.

Question 14

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

Accepted Answer

During a recession, consumers tend to be more cautious with their spending and the use of credit typically declines as people become more debt-averse. Consumer spending usually decreases as many people prioritize necessities over discretionary purchases. Taxes may remain steady or even decrease as governments try to stimulate economic activity. Property values may decline during a recession as demand for real estate decreases. Consumers may also prioritize saving or paying down debt over entertainment expenses.

Question 15

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

Accepted Answer

The answer of Approximately what percentage of U.S.households has an...

Question 16

The recent large decline in __________ has had 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

A decline in property values can lead to a decrease in perceived net worth, affecting consumer spending habits as people may feel less wealthy and thus more cautious with their expenditures.

Question 17

Income used to buy luxury items such as a Cunard cruise is referred to as __________.

Accepted Answer

Discretionary income refers to income that is available after necessary expenses such as bills and groceries are paid. This income can be used for luxury items such as a Cunard cruise.

Question 18

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 is the money a consumer has left after paying taxes to use for necessary expenses, such as food, shelter, clothing, and transportation. Discretionary income, on the other hand, is money left over after paying for necessities that can be used for non-essential items such as entertainment or luxury goods. Gross income is the total amount earned before taxes or other deductions, while net income is the income remaining after all deductions, including taxes, have been taken out. Household income refers to the total income earned by all members of a household. Therefore, choice B - disposable income - is the best option.

Question 19

Most specifically,if a consumer's __________ increases,s/he is able to take advantage of the luxurious vacation travel opportunities offered on the Queen Mary,a cruise liner operated by Cunard and depicted in the ad above.

Accepted Answer

Discretionary income refers to the money left over after all necessary expenses such as bills, taxes, and living expenses have been paid. This is the money that can be used for discretionary spending, such as luxurious vacation travel on a cruise liner like the Queen Mary. So, if a consumer's discretionary income increases, they would have more money available to spend on such luxuries.

Question 20

The Department of Labor monitors consumer expenditures through its annual __________.

Accepted Answer

The Consumer Expenditure Survey is a survey conducted annually by the Department of Labor to monitor consumer expenditures. The other choices mentioned are also indexes or surveys related to consumer behavior, but they are not the specific survey mentioned in the question.

Quiz 3: Scanning the Marketing Environment

The money that remains after paying for taxes and necessities is referred to as __________.

Emily had an excellent year as a salesperson in 2013,earning $97,000.She paid $17,000 for "necessities" such as mortgage,food,and clothing.Her state and federal income taxes totaled $24,000.What was her disposable income?

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

Marketers collect and use environmental information to better understand consumers.The ESRI Tapestry Segmentation tool is used to

Discretionary income refers to

Disposable income refers to

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

The recent large increase in __________ has caused consumers to adjust their spending in other categories.

The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey.In 2010,consumers spent about 13 percent of their income on food,34 percent on __________,3.5 percent on clothes and 22 percent on transportation and health care.

Increases in discretionary income can occur as a result of all of the following EXCEPT:

Gross income refers to

In 1970,the typical U.S.household earned about $8,700.In 2011,the typical U.S.household earned about $50,054.If adjusted for inflation,the gross income of the typical U.S.household in 2011 relative to 1970 has __________.

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

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

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

The recent large decline in __________ has had a psychological impact on consumers who tend to spend more when they feel their net worth is rising and postpone purchases when it declines.

Income used to buy luxury items such as a Cunard cruise is referred to as __________.

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

Most specifically,if a consumer's __________ increases,s/he is able to take advantage of the luxurious vacation travel opportunities offered on the Queen Mary,a cruise liner operated by Cunard and depicted in the ad above.

The Department of Labor monitors consumer expenditures through its annual __________.