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Consumer Surplus and Willingness to Pay quiz #8

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  • An example of discretionary spending is what?
    Buying a new television.
  • Consumers are powerful because
    Their choices determine what is produced in the market.
  • The pleasure, satisfaction, or happiness obtained from consuming a good or service is known as what?
    Utility.
  • When it comes to fees, micro-investing apps are beneficial because:
    They often have lower fees, increasing net returns.
  • Consumers waiting in long lines for a new product is an example of what?
    High demand and willingness to pay.
  • Businesses and industries in the 1920s most closely followed the buying demands of whom?
    Consumers.
  • Consumers influence producers because consumers supply what?
    Demand and information about preferences.
  • If you drive a fancy car a lot of miles each month, your premiums will likely be…
    Higher, due to increased risk.
  • A survey of hobbies and purchases can help a producer do what?
    Identify consumer preferences and target markets.
  • If total spending rises from one year to the next, then what?
    Either prices, quantities, or both have increased.
  • In a free market system, the concept of consumer sovereignty means that
    Consumers determine what goods and services are produced.
  • The public wants to hold some of its wealth as to make purchases with it and to hold it as an asset. What is this called?
    The demand for money as a medium of exchange and store of value.
  • Pair several products together and selling them for less money than each would be individually is called what?
    Bundling.
  • Facebook uses a ____ to show businesses how relevant or non-relevant their advertising efforts are.
    Relevance score or metric.
  • To buy a product, customers in a market must first do what?
    Have both willingness and ability to pay.
  • A DJ wants to analyze market reactions. What should they study?
    Consumer demand and willingness to pay for music or events.
  • The goal of consumer choices is to maximize what?
    Utility or consumer surplus.
  • To select the best strategy available to them, marketers should consider what?
    Consumer preferences, willingness to pay, and market conditions.
  • Consumer expectations are a determinant of what?
    Demand.
  • In making the best economic choices, consumers compare the benefits of the choice to what?
    The costs.
  • Changes in consumption and gross investment can:
    Affect overall economic growth and consumer surplus.
  • A is something that a customer values and that can be bought or sold voluntarily.
    Good or service.
  • In microeconomic terms, the ability of a good or a service to satisfy wants is called:
    Utility.
  • If the price of an apple is $0.50, the marginal utility per dollar spent on the fifth apple is:
    The marginal utility of the fifth apple divided by $0.50.
  • A strong stock market depends on what?
    Investor confidence and economic growth.
  • When selecting a target market, firms will be most successful if they
    Choose segments with high willingness to pay and unmet needs.
  • The cost of a tire indicates the expected life of a tire. True or false?
    False; price may reflect quality, but not always.
  • Choice yields the largest profit. What does this mean?
    The best choice is the one with the highest net benefit.
  • The products you buy tell a blank about you. What is the blank?
    Story or information about your preferences.
  • Marketers hold a focus group to learn more about how customers feel toward a new product. Why?
    To gain insights into consumer preferences and willingness to pay.
  • Consumer income is a blank______ factor that is important to marketers. What is the blank?
    Determinant.
  • A yogurt shop offers 6 different flavors. What is this an example of?
    Product differentiation to appeal to diverse preferences.
  • Consumer learning typically begins with what?
    Awareness or information search.
  • Consumers are typically most willing to pay more for goods and services that bring them greater what?
    Utility or satisfaction.
  • Which of the following is a benefit of channels of distribution?
    They make products more accessible to consumers.
  • The willingness and ability of a consumer to buy a normal product falls because of what?
    A decrease in income.
  • Learning as much as you can before buying something is called what?
    Information search or research.
  • A guest is interested in a specific product but is unhappy with the price. What might they do?
    Seek alternatives or wait for a price reduction.
  • Is the term used to describe the amount of control or influence that consumers have on a market.
    Consumer sovereignty.
  • If having a warranty on a car is important, a person should buy a car that is what?
    Covered by a warranty.