1. To establish a market, which of the following are essential?
1. A marketplace or a location
2. Potential buyers
3. An auctioneer
4. Potential sellers
A. 1, 2 and 4
B. 1, 2, 3, and 4
C. 1 only
D. 2 and 4
E. None of the above
2. Marketing value is:
A. The share of consumer food expenditures going to farmers
B. The share of consumer food expenditures going only to processors
C. The share of consumer food expenditures going to agribusinesses
D. The share of consumer food expenditures going only to marketers
E. None of the above
3. Micropolitan area contains:
A. One urbanized area of at least 10,000 but less than 50,000 people
B. One urbanized area of at least 20,000 but less than 50,000 people
C. One urbanized area of at least 30,000 but less than 50,000 people
D. One urbanized area of at least 40,000 but less than 50,000 people
E. None of the above.
4. Which of the following does not belong to Maslow's hierarchy of needs?
A. Self-actualization
B. Political views
C. Esteem
D. Love/belonging
E. Physiological
5. The process of identifying and focusing on target submarkets is known as:
A. Market collusion
B. Market targeting
C. Market segmentation
D. Market development
E. None of the above
6. Given the following information concerning elasticities for bubble gum:
Own-price elasticity of demand = -0.3
Own-price elasticity of supply = 1.7
Income elasticity = 0.6
Cross-price elasticity concerning chewing gum = -1.5,
then bubble gum demand is ___ and it is a ___ good.
A.Unitary elastic; inferior
B.Inelastic; inferior
C. Elastic; inferior
D. Inelastic; normal
E. Elastic; normal
7. The cross-price elasticity for peanut butter demand with respect to the price of jelly is equal to -0.8. If the price of jelly decreases by 10%, the consumption of peanut butter will:
A. Decrease by 8%
B. Decrease by 1.25%
C. Increase by 1.25%
D. Increase by 8%
E. None of the above
8. The percentage change in quantity demanded of a commodity or product given a 1% change in income is captured by:
A. Own-price elasticity of demand
B. Cross-price elasticity
C. Own-price flexibility
D. Own-price elasticity of supply
E. Income elasticity
9. The most important determinant of supply elasticity is:
A. Length of time
B. Degree of substitutability
C. Degree of complementarity
D. Importance in the budget
E. Luxury versus necessity
10. Assume that a retailer sells 2,000 six-packs of Pepsi per day at a price of $3.00 per six-pack. Also, assume the cross-price elasticity for Pepsi with respect to the price of Coca Cola is 0.5. If the price of Coca Cola rises by 10 percent, what will be the new quantity of six-packs sold by Pepsi?
A. 1,000
B. 2,100
C. 2,400
D. 12,000
E. None of the above
