Question 1

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 2

Cloud computing enables businesses and consumers to access software applications directly from third parties over the Internet and "pay as they go".This is an example of how __________ is used to replace existing standalone software applications.

Accepted Answer

Cloud computing is an example of how technology is used to replace existing standalone software applications. Cloud computing enables businesses and consumers to access software applications directly from third parties over the Internet and "pay as they go", thereby replacing the need for standalone software applications.

Question 3

Last year the Parker family used to eat at nice restaurants almost four times a week.Even though Mr.Parker got a 5% raise, the cost of living increase this year was 7%.As a result the family eats most of their meals at home, dining out only four times a month.This reflects

Accepted Answer

The increase in the cost of living has reduced the family's purchasing power. Even with the 5% raise, they cannot afford to dine out as often as they used to, resulting in a decrease in their discretionary income.

Question 4

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

Accepted Answer

The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey, which collects data on the spending habits of American households. The other options are not related to the Department of Labor's monitoring of consumer expenditures.

Question 5

Google has developed a __________ collection of software including e-mail and word processing called Google Apps which are currently available in today's marketplace.

Accepted Answer

Google Apps are a suite of cloud-based software applications, meaning they are accessed and run through the internet rather than being installed on a local computer. The term "cloud computing" refers to this type of service.

Question 6

The owner of your local KFC franchise has had a good year with rising revenues and reduced operating costs that resulted in a personal income of approximately $100,000.One-third of that was taken for local, state, and federal income taxes, and another third went to pay for mortgage, car payments, food, clothing, and other necessities.What is the remaining third called?

Accepted Answer

Discretionary income is the portion of an individual's income that is left for spending, investing, or saving after taxes and necessities have been paid.

Question 7

Technology refers to

Accepted Answer

Technology refers to the inventions or innovations from applied science or engineering research. It includes devices, mechanisms, or processes that have been developed or improved through scientific research and engineering. It is not limited to devices or processes for which there is no substitute, nor is it limited to mechanical devices used in production or distribution, or only inventions or innovations that generate a profit. It also includes concepts or ideas that have been translated into useable devices or processes.

Question 8

Inventions or innovations from applied science or engineering research are referred to as

Accepted Answer

Inventions or innovations from applied science or engineering research are called technology. Technology is the practical application of scientific knowledge for practical purposes.

Question 9

During a recessionary period which of the following is expected?

Accepted Answer

During a recession, people tend to be more cautious with their spending and therefore are less likely to use credit.

Answer: C
 During a recession, the government may increase taxes at a national level to help balance the budget, while local governments may decrease taxes to encourage spending and stimulate the economy.

Note: B, D, and E are all unlikely during a recession. Consumer spending tends to decrease during a recession, property values tend to decrease, and consumers tend to cut back on discretionary spending such as entertainment.

Question 10

Our society is in a period of dramatic

Accepted Answer

The given options suggest societal changes, and technological change stands out as the most prominent and impactful change in recent times. With the advent of the internet, smartphones, automation, and artificial intelligence, technology has brought about transformative changes in how we live, work, and interact. Hence, option D is the best choice.

Question 11

Carl and Nancy Johnson prepared a household budget in an attempt to manage their money better.As part of the budgeting process, Carl and Nancy prepared the following list:

Accepted Answer

The answer of Carl and Nancy Johnson prepared a household...

Question 12

If taxes rise at a faster rate than income does, consumers most likely

Accepted Answer

When taxes rise at a faster rate than income, consumers have less disposable income to spend on goods and services, causing them to feel the pinch and try to economize. This can lead to reduced spending and overall economic slowdown.

Question 13

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

The answer of The recent large decline in __________ has...

Question 14

The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey.In 2007, consumers spent about 12 percent of their income on food, 34 percent on housing, and 4 percent on __________.

Accepted Answer

The answer of The Department of Labor monitors consumer expenditures...

Question 15

Medication sensors have been developed that can dispense medicines by circulating within the arteries of the body and sensing when the medication is needed.This is an example of how __________ help(s) to improve or replace existing products and companies.

Accepted Answer

The development of medication sensors is a result of technological advancements, specifically in the field of medical technology, which aims to improve and replace existing products and companies.

Question 16

Emily had an excellent year as a saleswoman in 2010.She earned $97,000.She paid $17,000 for "necessities" such as mortgage, food, and clothing.She was given a six-week all expenses paid vacation by the company for her sales performance that had a value of $9,000.Her state and federal income taxes totaled $24,000.What was her discretionary income?

Accepted Answer

Discretionary income is calculated by subtracting taxes and necessities from total earnings. $97,000 - $17,000 - $24,000 = $56,000.

Question 17

Recently, the number of people who attended music concerts, plays, and other live entertainment increased, because many people believed they had the __________ income to enjoy such events.

Accepted Answer

Discretionary income refers to the amount of money that people have left over after covering their basic needs, such as food, housing and utilities. This income can then be used for non-essential expenses, such as attending live entertainment events. Therefore, choice A is the best option as it directly relates to the context.

Question 18

Income used to buy luxury items such as a Regent cruise is referred to as

Accepted Answer

Discretionary income refers to the amount of money that is available for spending after paying for necessities like housing, food, and other essential expenses. It represents the portion of income that can be used for non-essential, or discretionary, purchases like luxury items such as a Regent cruise.

Question 19

Discretionary income refers to

Accepted Answer

Discretionary income is the money that remains after paying for taxes and necessities, allowing individuals to spend on non-essential items or save.

Question 20

Technological advances are difficult to predict, however, four new technologies that are expected to have impact on marketing within the next few years include

Accepted Answer

Nanotechnology is expected to revolutionize product development, biotechnology will impact the way we produce and market products, cloud computing will continue to change the way we communicate with customers and manage data, and wireless power will change the way we interact with our devices and the environment. These four technologies are expected to have a significant impact on marketing in the near future. The options in B, C, D, and E do not have the same level of expected impact on marketing.

Quiz 3: Scanning the Marketing Environment