The conclusion that free, unregulated markets will produce an efficient outcome breaks down if ?

households do not have perfect information

firms are not price takers in input markets

firms are not price takers in the output market

The Coase theorem states that ?

the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.

public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good

under certain conditions, private parties can arrive at the efficient solution without government involvement

the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.

if there are external costs in production the government must intervene in the market to assure that the efficient level of output is produced

The Choice between high markups and high volume is part of which of the following retailer marketing decisions ?

Produced assortment and services decisions

The American Marketing Association suggests a list of code of ethics All of the following are ethics suggested in the area of distribution EXCEPT ?

not exerting undue influence over the reseller’s choice to handle a product

not manipulating the availability of a product for purpose of explotation

not using coercion in the marketing channel

using gray marketers whenever possible to save the consumer money

not exerting undue influence over the reseller’s choice to handle a product

Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business ?

To protect businesses from unfair consumer demands

To protect companies form each other

To protect consumers from unfair business practices

To protect the interests of society

To protect businesses from unfair consumer demands

R&D and engineering first produce the product concept into a physical product during which of the following stages of the new product development process ?

Concept development and testing

rival in consumption and their benefits are non-excludable

non-rival in consumption and their benefits are nonexcludable:

rival in consumption and their benefits are excludable

rival in consumption and their benefits are non-excludable

non-rival in consumption and their benefits excludable

One of the most common problems with using internal database information is that ?

it is usually expensive to retrieve

since it was probably collected for some other purpose it may be incomplete or wrong

it is usually expensive to retrieve

top executives are usually unwilling to relinquish data therefore the data has limits

the data is almost always unsecured and therefore, suspect as to reliability

One common misuse of marketing research findings in contemporary business is the tendency for marketing research tp ?

become a vehicle for pitching the sponsor’s products

become a means for raising prices

become a means of unfair competition

More and more salespeople are being evaluated and compensated based on different measures than in the past. All of the following are illustrations of those measures EXCEPT ?

long term customer sanctification

competitive predatory pricing performance

Markets fail to produce an efficient allocation of resources, but government also fail because ?

elected officials will act selflessly for the good of society and ignore their own self interest

the managers of government agencies are trying to maximize the profit of their agency and they ignore the implications that this has on other departme

the optimal level of public goods may be too expensive for the society to produce

the measurement of social damages and benefits is difficult and imprecise

Many U.S firms have sought relief from foreign competition by demanding protectionism policies by the U.S government. A better way for companies to compete is to expand into foreign markets and ?

increase promotion both at home and abroad

continuously improve their products at home

_______ is the concept under which a company carefully integrates and coordinates its may communications channels to deliver a clear consistent and compelling message about the organization and its products?

Integrated demand characteristics

Integrated international affairs

Integrated marketing communications

Integrated demand characteristics

________ is screening new product ideas in order to spot good ideas and drop poor ones as soon as possible?

Concept development and testing

In 1985, the Coca-cola Company made a classic marketing blunder with its deletion of its popular Coca-Cola product and introduction of what it called New Coke Analysts now believe that most of the company’s problems resulted from poor marketing research. As the public demanded their old Coke back the company relented and reintroduced Coca-Cola Classic (which has regained and surpassed its former position) while New Coke owns only 0.1 percent of the market Which of the following marketing research mistakes did Coca-Cola make ?

They failed to account for the Pepsi Challenge taste test in their marketing efforts

They did not investigate pricing correctly and priced the product too high

They did not investigate dealer reaction and had inadequate distribution

They defined their marketing research problem too narrowly

They failed to account for the Pepsi Challenge taste test in their marketing efforts

imperfect competition occurs ?

When firms have some control over price and competition

When firms are not profit maximisers

When firms have some control over price and competition

When the consumption of the good involves an external benefit

Whenever firms are losing money.

If PX > MCX, society gains by ?

Increasing the cost of producing X

161 + Mcqs in Markets Page 2 McqOptions

51.	The first modern environmental movement in the United States began in the ?
A.	1940s
B.	1950s
C.	1960s and 1970s
D.	mid-1980s
Answer» D. mid-1980s

Discussion

52.	The fact that services cannot be stored for later use or sale is evidence of their ?
A.	intangibility
B.	inseparability
C.	variability
D.	perishability
Answer» E.

Discussion

53.	The fact that services are sold, produced and consumed at the same time refers to which of the following service characteristics ?
A.	Intangibility
B.	Inseparability
C.	Variability
D.	Perishability
Answer» C. Variability

Discussion

54.	The course of a product’s sales and profits over its lifetime is called ?
A.	the sales chart
B.	the dynamic growth curve
C.	the adoption cycle
D.	the adoption cycle
E.	the product life cycle
Answer» F.

Discussion

55.	The conclusion that free, unregulated markets will produce an efficient outcome breaks down if ?
A.	households do not have perfect information
B.	firms are not price takers in input markets
C.	firms are not price takers in the output market
D.	all of the above
Answer» E.

Discussion

56.	The Coase theorem states that ?
A.	public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good
B.	under certain conditions, private parties can arrive at the efficient solution without government involvement
C.	the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.
D.	if there are external costs in production the government must intervene in the market to assure that the efficient level of output is produced
Answer» C. the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.

Discussion

57.	The Choice between high markups and high volume is part of which of the following retailer marketing decisions ?
A.	Target market decisions
B.	Produced assortment and services decisions
C.	Pricing decisions
D.	Promotion decisions
Answer» D. Promotion decisions

Discussion

58.	The biggest of greatest amount of involvement in a foreign market comes through which of the following ?
A.	Exporting
B.	Joint venturing
C.	Licensing
D.	Direct investment
Answer» E.

Discussion

59.	The American Marketing Association suggests a list of code of ethics All of the following are ethics suggested in the area of distribution EXCEPT ?
A.	not manipulating the availability of a product for purpose of explotation
B.	not using coercion in the marketing channel
C.	using gray marketers whenever possible to save the consumer money
D.	not exerting undue influence over the reseller’s choice to handle a product
Answer» D. not exerting undue influence over the reseller’s choice to handle a product

Discussion

60.	The advantages of audience selectivity no ad competition and personalization apply to which type of media ?
A.	Newspapers
B.	Television
C.	Direct Mail
D.	Radio
Answer» D. Radio

Discussion

61.	Rolls Royce uses which of the following distribution formats ?
A.	Intensive distribution
B.	Exclusive distribution
C.	Selective distribution
D.	Open distribution
Answer» C. Selective distribution

Discussion

62.	Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business ?
A.	To protect companies form each other
B.	To protect consumers from unfair business practices
C.	To protect the interests of society
D.	To protect businesses from unfair consumer demands
Answer» D. To protect businesses from unfair consumer demands

Discussion

63.	R&D and engineering first produce the product concept into a physical product during which of the following stages of the new product development process ?
A.	Concept development and testing
B.	Marketing strategy
C.	Business analysis
D.	Product development
Answer» E.

Discussion

64.	Private goods are ?
A.	non-rival in consumption and their benefits are nonexcludable:
B.	rival in consumption and their benefits are excludable
C.	rival in consumption and their benefits are non-excludable
D.	non-rival in consumption and their benefits excludable
Answer» C. rival in consumption and their benefits are non-excludable

Discussion

65.	Pricing to cover variable costs and some fixed costs as in the case of some automobile distributorships that sell below total costs is typical of which of the following pricing objectives ?
A.	current profit maximization
B.	product quality leadership
C.	Market share leadership
D.	Survival
Answer» E.

Discussion

66.	One of the most promising developments in multivariable segmentation is called ____ where a host of demographic and socioeconomic factors are used ?
A.	terragraphic segmentation
B.	fermagraphic segmentation
C.	geothermy segmentation
D.	geodemographic segmentation
Answer» E.

Discussion

67.	One of the most common problems with using internal database information is that ?
A.	since it was probably collected for some other purpose it may be incomplete or wrong
B.	it is usually expensive to retrieve
C.	top executives are usually unwilling to relinquish data therefore the data has limits
D.	the data is almost always unsecured and therefore, suspect as to reliability
Answer» B. it is usually expensive to retrieve

Discussion

68.	One common misuse of marketing research findings in contemporary business is the tendency for marketing research tp ?
A.	become a vehicle for pitching the sponsor’s products
B.	become a vehicle for pitching the sponsor’s products
C.	become a means for raising prices
D.	become a means of unfair competition
Answer» B. become a vehicle for pitching the sponsor’s products

Discussion

69.	More and more salespeople are being evaluated and compensated based on different measures than in the past. All of the following are illustrations of those measures EXCEPT ?
A.	long term customer sanctification
B.	competitive predatory pricing performance
C.	full customer service
D.	retention rates
Answer» C. full customer service

Discussion

70.	Markets fail to produce an efficient allocation of resources, but government also fail because ?
A.	elected officials will act selflessly for the good of society and ignore their own self interest
B.	the managers of government agencies are trying to maximize the profit of their agency and they ignore the implications that this has on other departme
C.	the optimal level of public goods may be too expensive for the society to produce
D.	the measurement of social damages and benefits is difficult and imprecise
Answer» E.

Discussion

71.	Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. _____ includes practices such as falsely advertising factory of wholesale prices or a large price reduction from a phony high retail price ?
A.	Deceptive promotion
B.	Deceptive packaging
C.	Deceptive pricing
D.	Deceptive cost structure
Answer» D. Deceptive cost structure

Discussion

72.	Many U.S firms have sought relief from foreign competition by demanding protectionism policies by the U.S government. A better way for companies to compete is to expand into foreign markets and ?
A.	lower prices
B.	increase promotion both at home and abroad
C.	continuously improve their products at home
D.	join into cartels at home
Answer» D. join into cartels at home

Discussion

73.	Joining with foreign companies to produce or market products and services is called ?
A.	direct exporting
B.	indirect exporting
C.	licensing
D.	joint venturing
Answer» E.

Discussion

74.	It is fact that there are 24 million left-handed people in the United States however most marketers do not attempt to appeal to or design products for this group because there is little in the way of census data about this is group Therefore, this groups fails in one of the requirements for effective segmentation Which of the following is most likely to apply in this case ?
A.	actionable
B.	substantial
C.	differentiable
D.	measurable
Answer» E.

Discussion

75.	_______ is the step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call?
A.	Prospecting
B.	Preapproach
C.	Approach
D.	Handling objections
Answer» C. Approach

Discussion

76.	________ is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter?
A.	Mass marketing
B.	Market segmentation
C.	Market targeting
D.	Market positioning
Answer» D. Market positioning

Discussion

77.	________ is the practice of adopting policies and developing strategies that both sustain the environment and produce profits for the company ?
A.	Environmentalism
B.	Environmental sustainability
C.	Consumerism
D.	Consumer accountability
Answer» C. Consumerism

Discussion

78.	_______ is the general term for a buying and selling process that is supported by electronic means?
A.	Internet commerce
B.	Web commerce
C.	Computer commerce
D.	Electronic commerce
Answer» E.

Discussion

79.	_______ is the concept under which a company carefully integrates and coordinates its may communications channels to deliver a clear consistent and compelling message about the organization and its products?
A.	The promotion mix
B.	Integrated international affairs
C.	Integrated marketing communications
D.	Integrated demand characteristics
Answer» D. Integrated demand characteristics

Discussion

80.	________ is setting the price steps between various products in a product the based on cost difference between the products, customer evaluations of different features, and competitors prices ?
A.	Optional-product pricing
B.	Captive-product pricing
C.	Product line pricing
D.	By-product pricing
Answer» D. By-product pricing

Discussion

81.	________ is screening new product ideas in order to spot good ideas and drop poor ones as soon as possible?
A.	Idea generation
B.	Concept development and testing
C.	Idea screening
D.	Brainstorming
Answer» D. Brainstorming

Discussion

82.	_______ is quoted as saying that everyone lives by selling something?
A.	Bill Gates
B.	Robert Louis Stevenson
C.	Arthur Miller
D.	Henry Ford
Answer» C. Arthur Miller

Discussion

83.	__________ is person’s distinguishing psychological characteristics that lead to his or her own environment?
A.	Psychographics
B.	Personality
C.	Demographics
D.	Lifestyle
Answer» C. Demographics

Discussion

84.	___________ is a strategy of using a successful brand name to launch a new of modified product in a new category ?
A.	Duobranding
B.	Line extension
C.	Brand extension
D.	Multibranding
Answer» D. Multibranding

Discussion

85.	_________ is a principle of enlightened marketing that requires that a company seek real product and marketing improvements ?
A.	Innovative marketing
B.	Consumer oriented marketing
C.	value marketing
D.	Sense of mission marketing
Answer» B. Consumer oriented marketing

Discussion

86.	__________ is a philosophy holding that a company’s marketing should support the best long-run performance of the marketing system?
A.	Enlightened marketing
B.	Myopic marketing
C.	Fundamental marketing
D.	Conceptual marketing
Answer» B. Myopic marketing

Discussion

87.	______ includes practices such as overstating the product’s features or performance luring the customer to the store for a bargain that is out of stock, or running rigged contests ?
A.	Deceptive promotion
B.	Deceptive packaging
C.	Deceptive pricing
D.	Deceptive cost structure
Answer» B. Deceptive packaging

Discussion

88.	In terms of special product life cycles a ________ is a basic and distinctive mode expression?
A.	genre
B.	style
C.	fashion
D.	fad
Answer» C. fashion

Discussion

89.	In terms of execution style a family seated at the dinner table enjoying the advertised product would be an example of which of the following types of advertising ?
A.	Slice of life
B.	Lifestyle
C.	Mood or imagery
D.	Personality symbol
Answer» B. Lifestyle

Discussion

90.	In evaluating messages for advertising telling how the product is better than the competing brands aims at making the ad ?
A.	meaningful
B.	distinctive
C.	believable
D.	remembered
Answer» C. believable

Discussion

91.	In determining salesforce size, when a company groups accounts into different size classes and then determines the number of salespeople needed to call on them the desired number of times it is called the ?
A.	Key-size approach
B.	work-load appraoch
C.	product-need appraoch
D.	call-service appraoch
Answer» C. product-need appraoch

Discussion

92.	In a example discussed in your text Johnson & Johnson’s recall of their Tylenol product following the discovery that several bottles of Tyloenol had been laced with cyanide is consistent with which business philosophy ?
A.	The marketing concept
B.	The product concept
C.	The selling concept
D.	The societal marketing concept
Answer» E.

Discussion

93.	In 1985, the Coca-cola Company made a classic marketing blunder with its deletion of its popular Coca-Cola product and introduction of what it called New Coke Analysts now believe that most of the company’s problems resulted from poor marketing research. As the public demanded their old Coke back the company relented and reintroduced Coca-Cola Classic (which has regained and surpassed its former position) while New Coke owns only 0.1 percent of the market Which of the following marketing research mistakes did Coca-Cola make ?
A.	They did not investigate pricing correctly and priced the product too high
B.	They did not investigate dealer reaction and had inadequate distribution
C.	They defined their marketing research problem too narrowly
D.	They failed to account for the Pepsi Challenge taste test in their marketing efforts
Answer» D. They failed to account for the Pepsi Challenge taste test in their marketing efforts

Discussion

94.	imperfect competition occurs ?
A.	When firms are not profit maximisers
B.	When firms have some control over price and competition
C.	When the consumption of the good involves an external benefit
D.	Whenever firms are losing money.
Answer» B. When firms have some control over price and competition

Discussion

95.	If your company were to make light bulbs to be used in photocopiers you would most likely be selling to a _________ market?
A.	reseller
B.	business
C.	government
D.	service
Answer» C. government

Discussion

96.	If your company were to make a product such as a suit of clothes and sold that product to a retailer your company would have sold to the __________ merket?
A.	reseller
B.	business
C.	government
D.	service
Answer» B. business

Discussion

97.	If Toyota describes one of its cars of the future as being a moderately priced subcompact designed as a second family car to be used arround town; the car is ideal for running errands and visiting friends, then the company has just stated a potential new product in terms of a(n) ?
A.	Product idea
B.	Product image
C.	Product concept
D.	Product features
Answer» D. Product features

Discussion

98.	If the field salesforce has been supplied with new leads (via the telephone) that have been qualified, they have probably been assisted by ?
A.	master salespersons
B.	sales assistants
C.	technical support persons
D.	telemarketers
Answer» E.

Discussion

99.	If some gain and some lose as the result of a proposed change and it can be demonstrated that the value of the gains would exceed the value of the losses then the change is said to be ?
A.	technically efficient.
B.	inefficient.
C.	potentially efficient
D.	unequivocally Pareto optimal
Answer» D. unequivocally Pareto optimal

Discussion

100.	If PX > MCX, society gains by ?
A.	raising the price of X.
B.	production less X
C.	Producing more X
D.	Increasing the cost of producing X
Answer» D. Increasing the cost of producing X

Discussion

Explore topic-wise MCQs in Economics.

The first modern environmental movement in the United States began in the ?

The fact that services cannot be stored for later use or sale is evidence of their ?

The fact that services are sold, produced and consumed at the same time refers to which of the following service characteristics ?

The course of a product’s sales and profits over its lifetime is called ?

The conclusion that free, unregulated markets will produce an efficient outcome breaks down if ?

The Coase theorem states that ?

The Choice between high markups and high volume is part of which of the following retailer marketing decisions ?

The biggest of greatest amount of involvement in a foreign market comes through which of the following ?

The American Marketing Association suggests a list of code of ethics All of the following are ethics suggested in the area of distribution EXCEPT ?

The advantages of audience selectivity no ad competition and personalization apply to which type of media ?

Rolls Royce uses which of the following distribution formats ?

Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business ?

R&D and engineering first produce the product concept into a physical product during which of the following stages of the new product development process ?

Private goods are ?

Pricing to cover variable costs and some fixed costs as in the case of some automobile distributorships that sell below total costs is typical of which of the following pricing objectives ?

One of the most promising developments in multivariable segmentation is called ____ where a host of demographic and socioeconomic factors are used ?

One of the most common problems with using internal database information is that ?

One common misuse of marketing research findings in contemporary business is the tendency for marketing research tp ?

More and more salespeople are being evaluated and compensated based on different measures than in the past. All of the following are illustrations of those measures EXCEPT ?

Markets fail to produce an efficient allocation of resources, but government also fail because ?

Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. _____ includes practices such as falsely advertising factory of wholesale prices or a large price reduction from a phony high retail price ?

Many U.S firms have sought relief from foreign competition by demanding protectionism policies by the U.S government. A better way for companies to compete is to expand into foreign markets and ?

Joining with foreign companies to produce or market products and services is called ?

_______ is the step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call?

________ is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter?

________ is the practice of adopting policies and developing strategies that both sustain the environment and produce profits for the company ?

_______ is the general term for a buying and selling process that is supported by electronic means?

_______ is the concept under which a company carefully integrates and coordinates its may communications channels to deliver a clear consistent and compelling message about the organization and its products?

________ is setting the price steps between various products in a product the based on cost difference between the products, customer evaluations of different features, and competitors prices ?

________ is screening new product ideas in order to spot good ideas and drop poor ones as soon as possible?

_______ is quoted as saying that everyone lives by selling something?

__________ is person’s distinguishing psychological characteristics that lead to his or her own environment?

___________ is a strategy of using a successful brand name to launch a new of modified product in a new category ?

_________ is a principle of enlightened marketing that requires that a company seek real product and marketing improvements ?

__________ is a philosophy holding that a company’s marketing should support the best long-run performance of the marketing system?

______ includes practices such as overstating the product’s features or performance luring the customer to the store for a bargain that is out of stock, or running rigged contests ?

In terms of special product life cycles a ________ is a basic and distinctive mode expression?

In terms of execution style a family seated at the dinner table enjoying the advertised product would be an example of which of the following types of advertising ?

In evaluating messages for advertising telling how the product is better than the competing brands aims at making the ad ?

In determining salesforce size, when a company groups accounts into different size classes and then determines the number of salespeople needed to call on them the desired number of times it is called the ?

In a example discussed in your text Johnson & Johnson’s recall of their Tylenol product following the discovery that several bottles of Tyloenol had been laced with cyanide is consistent with which business philosophy ?

imperfect competition occurs ?

If your company were to make light bulbs to be used in photocopiers you would most likely be selling to a _________ market?

If your company were to make a product such as a suit of clothes and sold that product to a retailer your company would have sold to the __________ merket?

If Toyota describes one of its cars of the future as being a moderately priced subcompact designed as a second family car to be used arround town; the car is ideal for running errands and visiting friends, then the company has just stated a potential new product in terms of a(n) ?

If the field salesforce has been supplied with new leads (via the telephone) that have been qualified, they have probably been assisted by ?

If some gain and some lose as the result of a proposed change and it can be demonstrated that the value of the gains would exceed the value of the losses then the change is said to be ?

If PX > MCX, society gains by ?