Arens - Contemporary Advertising & Integrated Marketing Communications - 14e, Test bank 0078028957

Arens - Contemporary Advertising & Integrated Marketing Communications - 14e, Test bank 0078028957

ch2 Key
 

1. (p. 34)

Economics has created the need for advertising and has made it a staple of the free enterprise system.    TRUE Economics has created the need for advertising and has made it a staple of the free enterprise system.

AACSB: Analytic Arens - Chapter 02 #1 Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Explain the role of competition in free-market economics. Topic: Economics: The Functions of Advertising and IMC in Free Markets

2. (p. 35)

A market economy is characterized by two assumptions: the interest of the community and the presence of externalities.    FALSE A market economy is characterized by four assumptions: self-interest, complete information, many buyers and sellers, and absence of externalities (social costs).

AACSB: Analytic Arens - Chapter 02 #2 Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Explain the role of competition in free-market economics. Topic: Principles of Free-Market Economics

3. (p. 35)

Open competition between self-interested sellers advertising to self-interested buyers leads to greater product availability at more competitive prices.    TRUE Open competition between self-interested sellers advertising to self-interested buyers naturally leads to greater product availability at more competitive prices.

AACSB: Analytic Arens - Chapter 02 #3 Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Explain the role of competition in free-market economics. Topic: Principles of Free-Market Economics

4. (p. 35)

The sale or consumption of products rarely benefits or harms other people who are not involved in the transaction and who did not pay for the product.    FALSE Sometimes the sale or consumption of products may benefit or harm other people who are not involved in the transaction and did not pay for the product.

AACSB: Analytic Arens - Chapter 02 #4 Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Explain the role of competition in free-market economics. Topic: Principles of Free-Market Economics