Marketing Final Practice Questions – Flashcards
10 test answers
Unlock all answers in this set
Unlock answers 10question
The vertical axis of a demand curve graph represents: A) quantity sold. B) price per unit. C) production cost per unit. D) potential profit in dollars. E) quantity demanded.
answer
B) price per unit.
Unlock the answer
question
Which of the following statements about price elasticity of demand is most accurate? A) Price elasticity with inelastic demand must always be greater than one. B) The more substitutes a product has, the less likely it is to be price elastic. C) Unitary demand represents the relationship between the cash outlay necessary to purchase a product, relative to a person's disposable income. D) Items requiring large cash outlay relative to the consumer's disposable income are price elastic. E) With inelastic demand, reducing price will result in an increase in total revenue though not necessarily an increase in profit.
answer
D) Items requiring large cash outlay relative to the consumer's disposable income are price elastic. Price elasticity with unitary demand is equal to 1. The more substitutes a product has, the more likely it is to be price elastic. Items that require a large cash outlay compared with a person's disposable income are price elastic. Price elasticity with inelastic demand is less than one. Price elasticity with elastic demand is greater than one. With inelastic demand, reducing price decreases total revenue.
Unlock the answer
question
The sum of fixed cost and variable cost represents __________. A) the profit equation B) variable costs C) break-even point D) variable costs E) total cost
answer
E) total cost
Unlock the answer
question
Three different objectives relate to a firm's profit, which is often measured in terms of (ROI). The acronym ROI stands for __________. A) risk opportunity information B) regulated organizational incentives C) return on investment D) regulated organizational investments E) replenishment of organizational inventories
answer
C) return on investment Three different objectives relate to a firm's profit, which is often measured in terms of return on investment (ROI) or return on assets (ROA
Unlock the answer
question
If the trade discount is listed 20/10/5, the number 10 represents: A) 10 percent of the retailer's cost or the manufacturer's sale price. B) 10 percent of the wholesaler cost or the jobber's sales price. C) 10 percent of the manufacturer's suggested price paid by the jobber. D) 10 percent of the jobber's price paid by the retailer. E) 10 percent of the manufacturer's price paid by the jobber.
answer
B) 10 percent of the wholesaler cost or the jobber's sales price. The first number in the percentage sequence always refers to the retail end of the channel, and the last number always refers to the wholesaler or jobber closest to the manufacturer in the channel.
Unlock the answer
question
When buyers and sellers are separated by vast distances, geographical adjustments may be made to reflect the cost of transportation of the products from sellers to buyers. Which method of quoting prices would be chosen by a seller who wants to maximize profits? A) uniform delivered pricing B) single-zone pricing C) multiple-zone pricing D) FOB origin pricing E) FOB buyer's location
answer
D) FOB origin pricing FOB origin pricing usually involves the seller's naming the location of the product onto a vehicle, usually at the seller's factory or warehouse. The title passes to the buyer at the point of loading, so the buyer is responsible for all freight costs. Thus, the seller has maximized profit, with no added costs for freight - and no geographical adjustments.
Unlock the answer
