Question 1

The way consumers are actually living is known as their
A)consumption quality.
B)level of living.
C)quality of life.
D)standard of living.

Accepted Answer

The "level of living" refers to the actual conditions and lifestyle that consumers experience, including their consumption patterns and material well-being.

Question 2

The Consumer Price Index (CPI)measures price each month of a fixed basket of 400 durable goods.

Accepted Answer

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, not just 400 durable goods. It includes various categories such as food, housing, apparel, transportation, medical care, and more, both durable and non-durable goods, as well as services.

Question 3

When millions of consumers make similar choices, this is called regional consumption.

Accepted Answer

When millions of consumers make similar choices, it is typically referred to as mass consumption, not regional consumption. Regional consumption would imply consumption patterns specific to a particular geographic area.

Question 4

Public policy anticipates potential areas of conflict and deals with them before, during, and after they have happened.

Accepted Answer

Public policy is designed to address current issues and anticipate potential problems, implementing measures to prevent, manage, and resolve conflicts as they arise.

Question 5

There is a downward trend in buying online.

Accepted Answer

Online shopping has been consistently growing over the years, with more consumers turning to the internet for their purchases due to convenience, variety, and often competitive pricing.

Question 6

What percentage of Americans state that they have a religious affiliation?
A)30%
B)10%
C)60%
D)90%

Accepted Answer

According to a 2014 Pew Research Center survey, 90% of Americans state that they have a religious affiliation.

Question 7

The CPI is published by the Bureau of Labor Statistics.

Accepted Answer

The Consumer Price Index (CPI) is indeed published by the Bureau of Labor Statistics, which is a part of the United States Department of Labor.

Question 8

The Consumer Expenditure Survey is collected from a national sample of 30,000 families and provides detailed information on spending habits.

Accepted Answer

The Consumer Expenditure Survey, conducted by the Bureau of Labor Statistics, collects information from a national sample of households, which has been around 30,000 families in recent years, to provide detailed data on their spending habits, income, and consumer unit characteristics.

Question 9

In the U.S., women account for approximately what percentage of spending?
A)40%
B)60%
C)20%
D)80%

Accepted Answer

Women drive 70-80% of all consumer purchasing, through a combination of their buying power and influence. Influence means that even when a woman isn’t paying for something herself, she is often the influencer or veto power behind someone else’s purchase.

Question 10

How people frame or put into context their buying and selling is called the
A)innovation theory.
B)theory of mental accounting.
C)endowment effect.
D)entropy theory.

Accepted Answer

The theory of mental accounting explains how people frame or put into context their buying and selling decisions, categorizing money and expenditures into different accounts mentally.

Question 11

The Human Development Index (HDI)quantifies
A)market inflation.
B)the consumer price index.
C)human well-being.
D)market deflation.

Accepted Answer

The Human Development Index (HDI) is a composite index measuring average achievement in three basic dimensions of human development: a long and healthy life, knowledge, and a decent standard of living, thus quantifying human well-being.

Question 12

Economists generally agree that consumers are rational and acquisitive.

Accepted Answer

Economists often assume that consumers are rational, meaning they make decisions aimed at maximizing their utility or satisfaction, and acquisitive, meaning they seek to acquire goods and services to improve their well-being.

Question 13

The right to safety and to goods and services that provide for oneʹs physical needs is called
A)emotional well-being.
B)economic well-being.
C)social well-being.
D)physical well-being.

Accepted Answer

The right to safety and to goods and services that provide for one's physical needs is referred to as physical well-being. This encompasses the basic necessities for maintaining a healthy and safe life.

Question 14

Socialization refers to the process of learning to interact with others, forming cooperative relationships, participating in society, and learning the ways of daily life.

Accepted Answer

Socialization is indeed the process through which individuals learn to interact with others, form cooperative relationships, participate in society, and acquire the norms, values, and behaviors necessary for daily life.

Question 15

The __________shows how all the components including the consumers, markets, public policy, and media fit together.
A)Consumer Power Model
B)Broadcast Model
C)FTC Model
D)Pillingerʹs Research Model

Accepted Answer

The Consumer Power Model illustrates how various components such as consumers, markets, public policy, and media are interconnected and interact with each other.

Question 16

The Consumer Price Index (CPI)sets a base year equal to 100 for comparison. The current base year is
A)1986.
B)1990.
C)1982.
D)1980.

Accepted Answer

The Consumer Price Index (CPI) uses 1982 as the base year, setting it equal to 100 for comparison purposes.

Question 17

It is estimated that what percentage of new products fail?
A)60%
B)90%
C)30%
D)10%

Accepted Answer

It is widely estimated that around 90% of new products fail. This high failure rate is attributed to various factors such as poor market research, lack of consumer interest, and ineffective marketing strategies.

Question 18

Consumer durables are products bought by consumers that are expected to last how many years?
A)3 years or more
B)5 years or more
C)10 years or more
D)1 years or more

Accepted Answer

Consumer durables are products that are expected to last 3 years or more, such as appliances, cars, and furniture, differentiating them from non-durable goods.

Question 19

The application of scientific knowledge to useful purposes is called
A)technological obsolescence.
B)the media mix.
C)technology.
D)innovation.

Accepted Answer

Technology is the application of scientific knowledge for practical purposes, especially in industry.

Question 20

Theories can be measured.

Accepted Answer

Theories are not directly measurable, but they can be tested through hypotheses and observations.

Quiz 3: Consumer Theories and Developing a Model

The way consumers are actually living is known as their

The Consumer Price Index (CPI)measures price each month of a fixed basket of 400 durable goods.

When millions of consumers make similar choices, this is called regional consumption.

Public policy anticipates potential areas of conflict and deals with them before, during, and after they have happened.

There is a downward trend in buying online.

What percentage of Americans state that they have a religious affiliation?

The CPI is published by the Bureau of Labor Statistics.

The Consumer Expenditure Survey is collected from a national sample of 30,000 families and provides detailed information on spending habits.

In the U.S., women account for approximately what percentage of spending?

How people frame or put into context their buying and selling is called the

The Human Development Index (HDI) quantifies

Economists generally agree that consumers are rational and acquisitive.

The right to safety and to goods and services that provide for oneʹs physical needs is called

Socialization refers to the process of learning to interact with others, forming cooperative relationships, participating in society, and learning the ways of daily life.

The __________shows how all the components including the consumers, markets, public policy, and media fit together.

The Consumer Price Index (CPI) sets a base year equal to 100 for comparison. The current base year is

It is estimated that what percentage of new products fail?

Consumer durables are products bought by consumers that are expected to last how many years?

The application of scientific knowledge to useful purposes is called

Theories can be measured.