1. Firms whose products require ________ resources—oil, coal, platinum, zinc, silver—face

 substantial cost increases as depletion approaches.

a. finite nonrenewable

b. finite renewable

c. infinite

d. perishable

e. near finite

2. The ________ market is the part of the qualified available market the company decides to

 pursue.

a. target

b. penetrated

c. available

d. potential

e. reserve

3. Jeanine would like to own a Mercedes but is unable to afford one at this time. Jeanine is part

 of the ________ market for this product.

a. potential

b. available

c. projected

d. penetrated

e. target

4. Which of the following organizations is likely to use the multiple-factor index method to

 estimate the market potential?

a. a firm that manufactures fashionable clothes for teenagers

b. a firm that manufactures auto parts

c. a company that provides website development services for small businesses

d. a company that manufactures diagnostic machines for hospitals

e. a firm that provides facility management services to large offices

5. Marketing ________ provide diagnostic information about how and why we observe certain

 effects in the marketplace, and what that means to marketers.

a. mix models

b. information systems

c. metrics

d. channels

e. insights

6. You are the marketing research director of a medium-sized manufacturing firm and you would  like to engage an outside marketing research firm to conduct field interviews. Which of the  following options category of marketing research firms should you use?

a. syndicated-service research firms

b. custom marketing research firms

c. global research management firms

d. brand management specialty research firms

e. specialty-line marketing research firms

7. A company would like to study the impact of advertising expenditure on sales and sales

 revenue. This is an example of ________ research.

a. causal

b. secondary

c. exploratory

d. qualitative

e. prescriptive

8. ________ data are data that were collected for another purpose and already exists.

a. Secondary

b. Cross-sectional

c. Primitive

d. Primary

e. Ordinate

9. “Truancy should be checked in schools: 1) Strongly disagree, 2) Disagree, 3) Neither

 agree nor disagree, 4) Agree, 5) Strongly agree.” This is an example of a ________.

a. Likert scale

b. semantic differential

c. Thematic Appreciation Test (TAT)

d. dichotomous question

e. multiple choice question

10. ________ attached to television sets in participating homes now record when the set is on and

 to which channel it is tuned.

a. Galvanometers

b. GPS systems

c. Tachistoscopes

d. Polygraphs

e. Audiometers

11. Which of the following is an advantage of personal interviews?

a. It facilitates anonymous responses.

b. The possibility of interviewer bias is minimized.

c. Participants can choose to respond at their own convenience.

d. Interviewers can record additional observation about the respondent such as body

 language.

e. It is a relatively inexpensive method of gathering information.

12. Which of the following is an advantage of online research?

a. Online research is relatively free of technological problems and inconsistencies.

b. Samples are generally representative of the target population.

c. People tend to be honest and thoughtful online.

d. Members of online panels and communities tend to have low turnover.

e. Online research is slow but gather detailed information.

13. According to marketing consultant, Pat LaPointe, the ________ metrics measurement pathway

 of the marketing dashboard reflects how prospects become consumers.

a. productivity

b. customer

c. cash-flow

d. brand

e. unit

14. In the modern customer-oriented organizational chart, which of the following is considered

 to be at the top of the organizational pyramid?

a. front-line people

b. middle management

c. top management

d. sales

e. customers

15. A profitable customer yields a ________.

a. cost stream that exceeds the company’s revenue stream

b. revenue stream that exceeds by an acceptable amount his cost stream

c. cost stream that exceeds by an acceptable amount his revenue stream

d. revenue stream that exceeds the company’s cost stream

e. revenue stream that equals the company’s cost stream

16. Customer ________ is the process of carefully managing detailed information about individual

 customers and all customer “touch points” to maximize loyalty.

a. profitability analysis

b. relationship management

c. satisfaction analysis

d. value delivery

e. lifetime value

17. Sapphire Toys actually sells more than toys. It also sells branded clothing, music CDs, and

 books for children. This expansion of dealership sales offerings is an attempt to increase the

 value of the customer base by ________.

a. increasing the longevity of the customer relationship

b. reducing the rate of customer defection

c. making low-profit customers more profitable

d. enhancing the growth potential of each customer through cross-selling

e. terminating low-profit customers

18. LifeTime Insurance screens its customers and tries to get unprofitable customers to buy

 services from competitors. This is an example of ________.

a. terminating the relationship with low-profit customers

b. enhancing the growth potential of each customer through up-selling

c. reducing the rate of customer defection

d. increasing the longevity of the customer relationship

e. trying to increase the retention rate for low-profit customers

19. Many banks and phone companies now charge fees for once-free services to ensure minimum

 customer revenue levels. This helps the banks to ________.

a. enhance the growth potential for each customer through cross-selling

b. make low-profit customers more profitable

c. reduce the rate of customer defection

d. focus disproportionate effort on high-value customers

e. increase the longevity of the customer relationship

20. Some customers inevitably become inactive or drop out. The challenge for marketers is to

 reactivate them through ________ strategies.

a. defection

b. recuperation

c. win-back

d. retention

e. sell-out

21. The process of building, maintaining, and using customer databases and other databases for

 the purpose of contacting, transacting, and building customer relationships is called

 ________.

a. data warehousing

b. permission marketing

c. data mining

d. participatory marketing

e. database marketing

22. ________ is the study of how individuals, groups, and organizations select, buy, use, and

 dispose of goods, services, ideas, or experiences to satisfy their needs and wants.

a. Mind mapping

b. Consumer behavior

c. Target marketing

d. Product differentiation

e. Consumer activism

23. Social classes differ in media preferences, with upper-class consumers often preferring

 ________ and lower-class consumers often preferring television.

a. magazines and books

b. movies

c. music downloads

d. video or computer games

e. radio

24. Identify an economic circumstance that can greatly affect any product or brand choice.

a. values

b. lifestyle

c. relocation

d. retirement

e. borrowing power

25. Ford motors, uses the ad caption “Magnify the Adventure” to promote its latest SUV, the Ford  Endeavour. The ad features the car traveling through an uneven, rocky terrain. Within the context of Jennifer Aaker’s brand personality analysis, Ford Endeavour is most likely to be  strong on which of the following traits?

a. sophistication

b. sincerity

c. ruggedness

d. imagination

e. intelligence

Page 1

              Question 1. 1. (TCO 1) Opportunity cost is best defined as (Points : 4) 
       marginal cost minus marginal benefit.
       the time spent on an economic activity.
       the value of the best forgone alternative.
       the money cost of an economic decision.
 
   
Question 2. 2. (TCO1) Money is not considered to be an economic resource because (Points : 4) 
       as such, it is not productive.
       money is not a free gift of nature.
       money is made by man.
       idle money balances do not earn interest income.
 
   
Question 3. 3. (TCO1) A point outside the production possibilities curve is (Points : 4) 
       attainable, but there is not full employment.
       attainable, but there is not optimal allocation.
       unattainable because the economy is inefficient.
       unattainable because of limited resources.
 
   
Question 4. 4. (TCO1) In a command system (Points : 4) 
       self-interest guides and commands individuals to pursue actions that lead them toward achieving their goals.
       the head of each family decides what to do with the family’s resources.
       the government makes production and allocation decisions.
       market traders command what outputs are produced and how they are allocated.
 
   
Question 5. 5. (TCO 2) The demand curve is a representation of the relationship between the quantity of a product demanded and (Points : 4) 
       supply.
       wealth.
       price.
       income.
 
   
Question 6. 6. (TCO 2) What combination of changes would most likely decrease the equilibrium price? (Points : 4) 
       When supply decreases and demand increases
       When demand increases and supply increases
       When demand decreases and supply decreases
       When supply increases and demand decreases
 
   
Question 7. 7. (TCO 2) You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than one.  To increase total revenues, you should (Points : 4) 
       increase the price of the software.
       decrease the price of the software.
       hold the price of the software constant.
       increase the supply of the software.
 
   
Question 8. 8. (TCO 2) Which of the following factors will make the demand for a product relatively elastic? (Points : 4) 
       There are few substitutes.
       The time interval considered is long.
       The good is considered a necessity.
       Purchases of the good require a small portion of consumers’ budgets.
 
   
Question 9. 9. (TCO 2) Which is true for a purely competitive firm in short-run equilibrium? (Points : 4) 
       The firm is making only normal profits.
       The firm’s marginal cost is greater than its marginal revenue.
       The firm’s marginal revenue is equal to its marginal cost.
       A decrease in output would lead to a rise in profits.
 
   
Question 10. 10. (TCO 2) Which case below best represents a case of price discrimination? (Points : 4) 
       An insurance company offers discounts to safe drivers.
       A major airline sells tickets to senior citizens at lower prices than to other passengers.
       A professional baseball team pays two players with identical batting averages different salaries.
       A utility company charges less for electricity used during “off-peak” hours, when it does not have to operate its less-efficient generating plants.
 
   
Question 11. 11. (TCO 3) A cartel is (Points : 4) 
       a form of covert collusion.
       legal in the United States.
       always successful in raising profits.
       a formal agreement among firms to collude.
 
   
Question 12. 12. (TCO 3) In the short run, output (Points : 4) 
       is absolutely fixed.
       can vary as the result of using a fixed amount of plant and equipment more or less intensively.
       may be altered by varying the size of plant and equipment which now exist in the industry.
       can vary as the result of changing the size of existing plants and by new firms entering or leaving the industry.
 
   
Question 13. 13. (TCO 4) A recession is a decline in (Points : 4) 
       the inflation rate that lasts six months or longer.
       the unemployment rate that lasts six months or longer.
       real GDP that lasts six months or longer.
       potential GDP that lasts six months or longer.
 
   
Question 14. 14. (TCO 4) Official unemployment rate statistics may (Points : 4) 
       overstate the amount of unemployment by including part-time workers in the calculations.
       understate the amount of unemployment by excluding part-time workers in the calculations.
       overstate the amount of unemployment because of the presence of “discouraged” workers who are not actively seeking employment.
       understate the amount of unemployment because of the presence of “discouraged” workers who are not actively seeking employment.
 
   
Question 15. 15. (TCO 4) GDP is the market value of (Points : 4) 
       resources (land, labor, capita, and entrepreneurship) in an economy in a given year.
       all final goods and services produced in an economy in a given year.
       consumption and investment spending in an economy in a given year.
       all output produced and accumulated over the years.
 
   
Question 16. 16. (TCO 4) The service a homeowner performs when she mows her yard is not included in GDP because (Points : 4) 
       this is a nonmarket transaction.
       this is a nonproduction activity.
       this is a noninvestment transaction.
       multiple counting would be involved.
 
   
Question 17. 17. (TCO 6) The goal of expansionary fiscal policy is to increase (Points : 4) 
       the price level.
       aggregate supply.
       real GDP.
       unemployment.
 
   
Question 18. 18. (TCO 6) Refer to the graph.  What combination would most likely cause a shift from AD1 to AD3? 
 
 Graph Description  (Points : 4) 
       Increases in taxes and government spending
       Decrease in taxes and increase in government spending
       Increase in taxes and decrease in government spending
       Decreases in taxes and government spending
 
   
Question 19. 19. (TCO 6) Which of the following serves as an automatic stabilizer in the economy? (Points : 4) 
       Interest rates
       Exchange rates
       Inflation rate
       Progressive income tax
 
   
Question 20. 20. (TCO 6) The lag between the time the need for fiscal action is recognized and the time action is taken is referred to as the (Points : 4) 
       crowding-out lag.
       recognition lag.
       operational lag.
       administrative lag.
 
 

page 2

 1. (TCO 5) An increase in aggregate demand is most likely to be caused by a decrease in (Points : 4) 
       the wealth of consumers.
       consumer and business confidence.
       expected returns on investment.
       the tax rates on household income.
 
   
Question 2. 2. (TCO 5) The upward slope of the short-run aggregate supply curve is based on the assumption that (Points : 4) 
       wages and other resource prices do not respond to price level changes.
       wages and other resource prices do respond to price level changes.
       prices of output do not respond to price level changes.
       prices of inputs are flexible while prices of outputs are fixed.
 
   
Question 3. 3. (TCO 5) Which would most likely increase aggregate supply? (Points : 4) 
       An increase in the prices of imported products
       An increase in productivity
       A decrease in business subsidies
       A decrease in personal taxes
 
   
Question 4. 4. (TCO 5) With cost-push inflation in the short run, there will be (Points : 4) 
       an increase in real GDP.
       a leftward shift in the aggregate demand curve.
       a decrease in real GDP.
       a decrease in unemployment.
 
   
Question 5. 5. (TCO 6) With an MPS of .3, the MPC will be (Points : 4) 
       1 – .3.
       .3 – 1.
       1/.3.
       .3.
 
   
Question 6. 6. (TCO 7) The M1 money supply is composed of (Points : 4) 
       all coins and paper money held by the general public and the banks.
       bank deposits of households and business firms.
       bank deposits and mutual funds.
       checkable deposits and currency in circulation.
 
   
Question 7. 7. (TCO 7) Which of the following “backs” the value of money in the United States? (Points : 4) 
       Gold stored in the Federal Reserve Bank of New York
       Acceptability of it as a medium of exchange
       Willingness of foreign government to hold U.S. dollars
       Size of the budget surplus in the U.S. government
 
   
Question 8. 8. (TCO 7) How many members can serve on the Board of Governors of the Federal Reserve System? (Points : 4) 
       Seven
       Nine
       12
       14
 
   
Question 9. 9. (TCO 7) Which of the following is the most important function of the Federal Reserve System? (Points : 4) 
       Setting reserve requirements
       Controlling the money supply
       Lending money to banks and thrifts
       Acting as fiscal agent for the U.S. government
 
   
Question 10. 10. (TCO 7) Money is “created” when (Points : 4) 
       a depositor gets cash from the bank’s ATM.
       a bank accepts deposits from its customers.
       people receive loans from their banks.
       people spend the incomes that they receive.
 
   
Question 11. 11. (TCO 7) The establishment of a federal deposit insurance program resulted from the (Points : 4) 
       establishment of the Federal Reserve System in 1913.
       speculation during World War I.
       stock market crash of 1987.
       bank panics of 1930-1933.
 
   
Question 12. 12. (TCO 7) Which monetary policy tool was created in response to the financial crisis of 2007-2008? (Points : 4) 
       Discount rate
       Term auction facility
       Target federal funds rate
       Open market operations
 
   
Question 13. 13. (TCO 7) The most frequently used monetary device for achieving price stability is: (Points : 4) 
       open market operations.
       the discount rate.
       the reserve ratio.
       the prime interest rate.
 
   
Question 14. 14. (TCO 8) Which of the following products is a leading import of the United States? (Points : 4) 
       Grains
       Aircraft
       Petroleum
       Generating equipment
 
   
Question 15. 15. (TCO 8) The principal concept behind comparative advantage is that a nation should (Points : 4) 
       maximize its volume of trade with other nations.
       use tariffs and quotas to protect the production of vital products for the nation.
       concentrate production on those products for which it has the lowest domestic opportunity cost.
       strive to be self-sufficient in the production of essential goods and services.
 
   
Question 16. 16. (TCO 8) If a nation imposes a tariff on an imported product, then the nation will experience a(n) (Points : 4) 
       decrease in total supply and an increase in the price of the product.
       decrease in demand and a decrease in the price of the product.
       decrease in supply of, and an increase in demand for, the product.
       increase in supply of, and a decrease in demand for, the product.
 
   
Question 17. 17. (TCO 8) If a nation agrees to set an upper limit on the total amount of a product that it exports to another nation, then this situation would be an example of (Points : 4) 
       an import quota.
       a revenue tariff.
       a protective tariff.
       a voluntary export restriction.
 
   
Question 18. 18. (TCO 8) Tariffs and import quotas would benefit the following groups, except (Points : 4) 
       consumers of the product.
       domestic producers of the product.
       workers in domestic firms producing the product.
       the government of the importing country.
 
   
Question 19. 19. (TCO 8) Which organization meets regularly to establish rules and settle disputes related to international trade? (Points : 4) 
       The United Nations Commission on Trade Law
       The United Nations Conference on Trade and Development
       The World Trade Organization
       The Federal Reserve Board
 
   
Question 20. 20. (TCO 9) French and German farmers wanting to buy equipment from an American manufacturer based in the U.S. will be (Points : 4) 
       supplying dollars and also supplying euros in the foreign exchange market.
       demanding dollars and also demanding euros in the foreign exchange market.
       supplying dollars and demanding euros in the foreign exchange market.
       supplying euros and demanding dollars in the foreign exchange market.
 

Page 3

              Question 1. 1. (TCO 9) In the balance of payments statement, a current account surplus will be matched by a (Points : 4) 
       capital and financial accounts deficit.
       capital and financial accounts surplus.
       trade deficit.
       trade surplus.
 
   
Question 2. 2. (TCO 9) If the United States wants to regain ownership of domestic assets sold to foreigners, it will have to (Points : 4) 
       increase domestic consumption.
       increase its national debt.
       export more than it imports.
       import more than it exports.
 
   
Question 3. 3. (TCO 9) If a Japanese importer could buy $1,000 U.S. for 122,000 yen, the rate of exchange for $1 would be (Points : 4) 
       8.19 yen.
       122 yen.
       820 yen.
       1,220 yen.
 
   
Question 4. 4. (TCO 9) If the exchange rate is $1 = 0.7841 euro, then a French DVD priced at 20 euros would cost an American buyer (excluding taxes and other fees) (Points : 4) 
       $15.68.
       $20.78.
       $25.51.
       $27.84.
 
   
Question 5. 5. (TCO 9) The monetary system for conducting international trade is usually described as a system of (Points : 4) 
       fixed exchange rates.
       freely floating exchange rates.
       a managed gold standard.
       managed floating exchange rates.
 
   
Question 6. 6. (TCO 8) a) Do protectionist policies benefit producers, consumers, workers, or the government?  Explain.  b) Explain how the “Buy American” theme hurts Americans. (Points : 40)
     
       
   
Question 7. 7.
(TCO 6) a) Identify the four major tools of monetary policy.  b) Describe how changes in the Fed’s major policy tools leads to [1] expansionary and [2] restrictive or contractionay monetary policies.

(Points : 40)
     
       
   
 

Week One Written Assignment

Following completion of your readings, complete exercises 35 and 37 in the “Real World Applications” section on page 280 of Mathematics in Our World (page 230 if using the PDF of Chapters One through Five).

For each exercise, specify whether it involves an arithmetic sequence or a geometric sequence and use the proper formulas where applicable. Format your math work as shown in the Week One Assignment Guide and be concise in your reasoning. Plan the logic necessary to complete the exercise before you begin writing.  For an example of the math required for this assignment, please review the Week One Assignment Guide.

The assignment must include (a) all math work required to answer the problems as well as (b) introduction and conclusion paragraphs.

• Your introduction should include three to five sentences of general information about the topic at hand.
• The body must contain a restatement of the problems and all math work, including the steps and formulas used to solve the problems.
• Your conclusion must comprise a summary of the problems and the reason you selected a particular method to solve them. It would also be appropriate to include a statement as to what you learned and how you will apply the knowledge gained in this exercise to real-world situations.

The assignment must be formatted according the APA (6th edition) style, which includes a title page and reference page. For information regarding APA samples and tutorials, visit the Ashford Writing Center, within the Learning Resources tab on the left navigation toolbar, in your online course.

Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.

Specifically, you should address the following questions in your paper:
McCloskey refers to the arguments as “proofs” and often implies that they can’t definitively establish the case for God, so therefore they should be abandoned. What would you say about this in light of Foreman’s comments in his “Approaching the Question of God’s Existence” presentation?
On the Cosmological Argument:
McCloskey claims that the “mere existence of the world constitutes no reason for believing in such a being [i.e., a necessarily existing being].” Using Evans and Manis’ discussion of the non-temporal form of the argument (on pp. 69–77), explain why the cause of the universe must be necessary (and therefore uncaused).
McCloskey also claims that the cosmological argument “does not entitle us to postulate an all-powerful, all-perfect, uncaused cause.” In light of Evans and Manis’ final paragraph on the cosmological argument (p. 77), how might you respond to McCloskey?
On the Teleological Argument:
McCloskey claims that “to get the proof going, genuine indisputable examples of design and purpose are needed.” Discuss this standard of “indisputability” which he calls a “very conclusive objection.” Is it reasonable?
From your reading in Evans and Manis, can you offer an example of design that, while not necessarily “indisputable,” you believe provides strong evidence of a designer of the universe?
McCloskey implies that evolution has displaced the need for a designer. Assuming evolution is true, for argument’s sake, how would you respond to McCloskey (see Evans and Manis pp. 82–83)?
McCloskey claims that the presence of imperfection and evil in the world argues against “the perfection of the divine design or divine purpose in the world.” Remembering Evans and Manis’ comments about the limitations of the cosmological argument, how might you respond to this charge by McCloskey?
On the Problem of Evil:
McCloskey’s main objection to theism is the presence of evil in the world and he raises it several times: “No being who was perfect could have created a world in which there was avoidable suffering or in which his creatures would (and in fact could have been created so as not to) engage in morally evil acts, acts which very often result in injury to innocent persons.” The language of this claim seems to imply that it is an example of the logical form of the problem. Given this implication and using Evans and Manis’ discussion of the logical problem (pp. 159–168, noting especially his concluding paragraphs to this section), how might you respond to McCloskey?
McCloskey specifically discusses the free will argument, asking “might not God have very easily so have arranged the world and biased man to virtue that men always freely chose what is right?” From what you have already learned about free will in the course, and what Evans and Manis says about the free will theodicy, especially the section on Mackie and Plantinga’s response (pp. 163–166) and what he says about the evidential problem (pp. 168–172), how would you respond to McCloskey’s question?
On Atheism as Comforting:
a.    In the final pages of McCloskey’s article, he claims that atheism is more comforting than theism. Using the argument presented by William Lane Craig in the article “The Absurdity of Life without God,” (located in Reading & Study for Module/Week 6), respond to McCloskey’s claim.