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Title: BUS 475 Week 2 Knowledge Check Latest UOP Assignment

1

BUS 475 Week 2 Knowledge Check

1. Compared with other approaches to business,
the marketing concept is distinct in that it
focuses on sales
produces new products and services
creates a broad assortment of products
focuses on satisfying customers' needs
2. A company provides its advertising agency with
a statement about a new product to use in
designing an advertising campaign, and this
statement includes a description of the target
market, the product type, the primary benefits of
using the product, and how this product is
different from, and better than, competitive
products. What type of statement is this?
Qualifying
Positioning
Determining
Clustering
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3. The sales analysis of a product revealed that
profits were highest when it was initially
introduced into the market with a high selling
price. However, the price was gradually reduced
as it started facing competition as substitutes
entered the market. This is an example of a(n)
introductory price dealing
temporary price cut policy
skimming price policy
penetration price policy
4. Blending the firm's promotion efforts to
convey a complete and consistent message is the
goal of
sales management communications
sales promotion communications
integrated promotional marketing
integrated marketing communications
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Knowledge Check

5. According to the concept of social
responsibility, a firm has a duty to
communicate regularly with the public
place profit above all other considerations
place customer satisfaction above all other
considerations
conduct business in a way that is good for
society as a whole, both now and for the future
6. The principal participants in the financial
markets are
businesses, banks, and government
borrowers, savers, and financial institutions
mutual funds, hedge funds, and investment bankers
dealers, brokers, and regulators
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9. A strong stock market and reasonably good
earnings have caused the price of the firm's
common stock to increase by 25.
This will have no effect on the firm's cost of
capital.
All things equal, this will increase the firms
cost of capital.
All things equal, this will lower the firm's cost
of capital.
This will only affect the cost of capital if the
firm uses CAPM to compute the cost of equity.
10. Buying and selling in more than one market to
make a riskless profit is called
profit maximization
arbitrage
international trading
This cannot be determined from the above
information.
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11. The United States imposes substantial taxes
on cigarettes but not on loose tobacco. When the
tax on cigarettes went into effect, the demand
for home cigarette rolling machines most likely
decreased, causing the price of cigarette rolling
machines to fall and the quantity of machines
purchased to fall
decreased, causing the price of cigarette rolling
machines to rise and the quantity of machines
purchased to fall
increased, causing the price of cigarette rolling
machines to rise and the quantity of machines
purchased to rise
increased, causing the price of cigarette rolling
machines to rise and the quantity of machines
purchased to fall
12. Keynes believed that an increase in savings
would
raise aggregate demand by reducing investment
raise aggregate demand by increasing consumption
reduce aggregate demand by reducing investment
reduce aggregate demand by reducing consumption
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13. Which of the following monetary policies
reduces aggregate demand and output?
cut in the federal funds rate
An open market purchase of government securities
An increase in the discount rate
A cut in the required reserve ratio
14. Deficits may be desirable in the short run
if they
help to stabilize the economy when the economy
falls below potential output
increase savings necessary for future investment
and growth
increase savings necessary for future consumption
and demand
help to stabilize the economy when the economy is
above potential output
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15. If for a country, the quantity of its
currency demanded exceeds the quantity supplied,
then there is a
balance of payments surplus
balance of payments deficit
balance of payments equilibrium
trade balance
16. Suppose that college tuition is higher this
year than last year and that more students are
enrolled in college this year than last year.
Based on this information, we can best conclude
that
the law of demand is invalid
despite the increase in price, quantity demanded
rose due to some other factor changing
this situation has nothing to do with the law of
demand
the demand for a college education is positively
sloped
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17. Economic efficiency is achieved at a
particular output level if
marginal cost is as low as possible
average fixed cost is as low as possible
average total cost is as low as possible
average variable cost is as low as possible
18. A perfectly competitive firm will be
profitable if price at the profit-maximizing
quantity is above
MC
AVC
ATC
AFC
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Question Answers

19. How are goods manufactured in other countries
creating jobs in the United States?
People whose jobs were outsourced are now
discouraged workers.
U.S. firms are specializing in managing the trade
of these goods.
Foreign countries are importing U.S. natural
resources
People who have lost jobs have more time to shop
and therefore increase demand for goods.
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