HW3 Econ 4211
October 3, 2008
1. Two villagers want to hire several Samurai days to protect their crops. It costs 4 bags of rice to hire a Samurai for one day. Assume (for simplicity) that the villagers preferences are dened over bundles of rice, (consume
e. a megopoly
Rationale: A pure monopoly occurs when only one firm sells the product. Typically, marketing
plays a small role in a monopolistic setting because the firm is regulated by the state or fe
c. meeting the growing perceived inequality among competing brands
e. reducing cognitive dissonance
Rationale: An increasingly important cultural value for consumers is sustainability and
Rationale: Text term definitionRobinson-Patman Act.
3-250 ROBINSON-PATMAN ACT
The purpose of the Robinson-Patman Act is to
a. outlaw price discrimination for purchasers of the same product.
3-148 VALUE CONSCIOUSNESS
Todays consumption orientation known as value consciousness is primarily due to
a. a rise in using debt to fund purchases.
b. the economic recession.
c. an expansion in the purchase of quality brand name products.
3-236 SMALL BUSINESS
Small businesses make up the majority of the competitive landscape for most businesses. There
are approximately _ small businesses in the United States.
a. 17 million
b. 27 million
c. 37 million
d. 50 million
e. 100 million
A time of declining economic activity when businesses decrease production, unemployment rises,
and many consumers have less money to spend is referred to as
d. a recession.
e. a depression.
3-191 TECHNOLOGICAL FORCES
Medication sensors have been developed that can dispense medicines by circulating within the
arteries of the body and sensing when the medication is needed. This is an example of how
_ forces help improve or replace
3-135 CHANGING ATTITUDES AND ROLES
According to some predictions, which of the following statements regarding attitudes and the
roles of men and women is most likely to occur if current trends continue?
a. The attitudes of men towards women
c. disposable income
d. discretionary income
Rationale: The three components of consumer income are gross income (not given in the
problem), disposable income ($4,500 in the problem), and disc
Rationale: A consumers net worth would be based on their personal assets such as property. If
the value of their property rises, they are more confident and can spend more; if the value of their
Consumer Confidence Index
Consumer Expenditure Survey
Index of Consumer Sentiment
National Consumer Spending Survey
Rationale: The Department of Labor monitors consumer expenditures through
Rationale: Discretionary income is the money that remains after paying for taxes and necessities.
Discretionary income = Gross income (wages, salaries, commissions, dividends, and noncash
income such as
Disposable income refers to
a. the money that remains after paying for taxes and necessities.
b. the money deducted from a persons paycheck to pay for federal, state, and local taxes.
c. the total amount of money made by a single individual in his or her
In 1970, the typical U.S. household earned about $8,700. In 2009, the typical U.S. household
earned about $49,777. If adjusted for inflation, the gross income of the typical U.S. household in
2009 relative to 1970 has _.
a. increased dramatically
e. assets, liabilities, and equities
Rationale: A consumers ability to buy is related to income, which consists of gross, disposable,
and discretionary components.
3-165 GROSS INCOME
3-158 INFLATIONARY ECONOMY
In an inflationary economy, the cost to produce and buy products and services _ as
a. increases; increase
b. increases; decrease
c. decreases; increase
d. decreases; decrease
e. does not change; increase
Rationale: The increased expenditures related to the war on terrorism is an example of an
3-155 ECONOMIC FORCES
Microsoft, Intuit, and Yahoo are building new fa
October 27, 2008
Isabelle Brotman-Evans, Leo Jankowski, Michael Hlis, Caytyn Green, Aaron
Rosenbaum, Brian Johnson
The Origins of Social Security: The idea of using government provided social security to
HW2 Econ 4211 Suggested solutions
September 20, 2008
Consider an economy with 2 inputs (K; L), 2 outputs (C; F ), 2 individuals. (A; E). There is a xed amount of inputs in the economy, total capital amount K and total amount of labor (hours) L: Recall the
attitudes, communication preferences, and lifestyles even though they have become part of
American society (alternative e).
3-126 MULTICULTURAL MARKETING
Which of the following statements is most accurate?
a. Some companies use mobile market
set of values, ideas, and attitudes that are learned and shared among the members of a group.
pastimes associated with the fine arts, such as ballet, music, and theater.
standard or pattern of behaviors that is typical or expected of a group.
Rationale: Consumers under 20 years old rank friendship third, while the 20-to-29 and 30-to39 age groups rank self-esteem and health and fitness as their third most important values,
3-138 CHANGING ATTITUDES AND ROLES
Over the past 30 years in the United States, the attitudes of men and women have changed. One
factor has been the _.
a. Internet, which made gender, race, and ethnicity invisible in the marketplace
b. way w
3-141 CHANGING ATTITUDES AND ROLES
Secret deodorants ad, Strong enough for a man, but made for a woman, reflected
a. the need to market products to a single gender at a time.
b. highlight that women were just as strong as men.
c. a bridge of t
the independent financial factors that are not affected by changes in government spending.
the purchase of the highest quality product for the lowest possible price.
the production, distribution, and consumption of products, services, and idea
remained flat at 0 percent
risen slightly at 2 percent
risen to 6 percent
exploded to 10 percent
Rationale: Recent data on consumer expenditures indicate that the savings rate of U.S.
3-194 TECHNOLOGICAL FORCES
Cloud computing, such as Apples iCloud, enables businesses and consumers to share ones data
or use a firms software application like Microsoft Office directly from that firms or a third
partys server over the Interne
An example of a dramatic _ change is the increasing use of e-readers like Amazons
Kindle and tablet devices like Apples iPad to read digital books.