Question 1

In his books The Affluent Society and The New Industrial State,John Kenneth Galbraith argues that consumer wants are never created by advertising or sophisticated sales strategies.

Accepted Answer

A) True 
 B)False  False

Question 2

The consumer's main source of product information is

Accepted Answer

A) testimonials of other customers. 
B) billboards. 
C) word of mouth. 
D) the label and package. 
A) testimonials of other customers. 
B) billboards. 
C) word of mouth. 
D) the label and package. D

Question 3

Deceptive advertising is always legal because we have freedom of speech.

Accepted Answer

A) True 
 B)False  False

Question 4

The FTC now follows the reasonable-person standard in matters of advertising,sales and marketing.

Accepted Answer

A) True 
 B)False

Question 5

Puffery is illegal.

Accepted Answer

A) True 
 B)False

Question 6

Economists can prove,if we grant them enough assumptions,that free-market buying and selling lead to optimal results.One of those assumptions is that everyone has full and complete information,on the basis of which they then buy and sell.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an example of price gouging?

Accepted Answer

A) Selling World Series Tickets for $300. 
B) New York hotels that doubled or tripled their prices in the aftermath of the September 11,2001,attacks. 
C) Having to pay above the seller's original asking price for a home. 
D) Increasing the price of lawn movers in the spring and summer. 
A) Selling World Series Tickets for $300. 
B) New York hotels that doubled or tripled their prices in the aftermath of the September 11,2001,attacks. 
C) Having to pay above the seller's original asking price for a home. 
D) Increasing the price of lawn movers in the spring and summer.

Question 8

The goal of advertising is

Accepted Answer

A) to persuade people to purchase the product. 
B) to provide information about goods and services. 
C) to provide information about prices. 
D) to subsidize the media. 
A) to persuade people to purchase the product. 
B) to provide information about goods and services. 
C) to provide information about prices. 
D) to subsidize the media.

Question 9

The case of FTC v.Standard Education was important in the legal transition

Accepted Answer

A) toward the principle of caveat emptor. 
B) toward something like the ignorant consumer standard. 
C) toward the reasonable-person standard. 
D) that removed power from the Federal Trade Commission (FT
C) . 
A) toward the principle of caveat emptor. 
B) toward something like the ignorant consumer standard. 
C) toward the reasonable-person standard. 
D) that removed power from the Federal Trade Commission (FT
C) .

Question 10

What is the importance of the 1916 case of MacPherson v.Buick Motor Car?

Accepted Answer

The 1916 case of MacPherson v. Buick Mot

Question 11

Due care is the idea that consumers and sellers do not meet as equals and that the consumer's interests are particularly vulnerable to being harmed by the manufacturer,who has knowledge and expertise the consumer does not have.

Accepted Answer

A) True 
 B)False

Question 12

Legal paternalism is the doctrine that the law should not be used to restrict the freedom of individuals for their own good.

Accepted Answer

A) True 
 B)False

Question 13

What is the importance of Greenman v.Yuba Power Products?

Accepted Answer

Greenman v. Yuba Power Products, Inc. is

Question 14

When advertisers conceal facts,they suppress information that is unfavorable to their products.

Accepted Answer

A) True 
 B)False

Question 15

Legal paternalism is the doctrine that the law

Accepted Answer

A) may justifiably restrict the freedom of the individual for his or her own good. 
B) may justifiably forbid lawsuits against those who act paternalistically. 
C) should encourage business to develop a paternal sense of responsibility for consumers. 
D) should only restrict people's freedom in order to protect other people. 
A) may justifiably restrict the freedom of the individual for his or her own good. 
B) may justifiably forbid lawsuits against those who act paternalistically. 
C) should encourage business to develop a paternal sense of responsibility for consumers. 
D) should only restrict people's freedom in order to protect other people.

Question 16

Defenders of advertising claim that,despite criticisms,advertising enjoys protection under the first Amendment as a form of speech.

Accepted Answer

A) True 
 B)False

Question 17

What is due care?

Accepted Answer

Due care refers to the effort made by an

Question 18

Terms like "can be," "as much as," and "help," are examples of

Accepted Answer

A) concealment of facts. 
B) truth in advertising. 
C) ambiguity. 
D) consumer confidence. 
A) concealment of facts. 
B) truth in advertising. 
C) ambiguity. 
D) consumer confidence.

Question 19

The doctrine of caveat emptor means that the law may be justifiably used to restrict the freedom of individuals for their own good.

Accepted Answer

A) True 
 B)False

Question 20

Critics of advertising generally agree that

Accepted Answer

A) advertising rarely gives consumers much useful information. 
B) brand loyalty increases price competition. 
C) restrictions on advertising violate the moral rights of advertisers. 
D) advertising can only influence us if we want it to. 
A) advertising rarely gives consumers much useful information. 
B) brand loyalty increases price competition. 
C) restrictions on advertising violate the moral rights of advertisers. 
D) advertising can only influence us if we want it to.

In his books The Affluent Society and The New Industrial State,John Kenneth Galbraith argues that consumer wants are never created by advertising or sophisticated sales strategies.

The consumer's main source of product information is

Deceptive advertising is always legal because we have freedom of speech.

The FTC now follows the reasonable-person standard in matters of advertising,sales and marketing.

Puffery is illegal.

Economists can prove,if we grant them enough assumptions,that free-market buying and selling lead to optimal results.One of those assumptions is that everyone has full and complete information,on the basis of which they then buy and sell.

Which of the following is an example of price gouging?

The goal of advertising is

The case of FTC v.Standard Education was important in the legal transition

What is the importance of the 1916 case of MacPherson v.Buick Motor Car?

Due care is the idea that consumers and sellers do not meet as equals and that the consumer's interests are particularly vulnerable to being harmed by the manufacturer,who has knowledge and expertise the consumer does not have.

Legal paternalism is the doctrine that the law should not be used to restrict the freedom of individuals for their own good.

What is the importance of Greenman v.Yuba Power Products?

When advertisers conceal facts,they suppress information that is unfavorable to their products.

Legal paternalism is the doctrine that the law

Defenders of advertising claim that,despite criticisms,advertising enjoys protection under the first Amendment as a form of speech.

What is due care?

Terms like "can be," "as much as," and "help," are examples of

The doctrine of caveat emptor means that the law may be justifiably used to restrict the freedom of individuals for their own good.

Critics of advertising generally agree that

The Nature of Morality

Normative Theories of Ethics

Justice and Economic Distribution

The Nature of Capitalism

Corporations

The Environment

The Workplace 1: Basic Issues

The Workplace 2: Todays Challenges

Moral Choices Facing Employees

Job Discrimination

Filters

Exam 6: Consumers

In his books The Affluent Society and The New Industrial State,John Kenneth Galbraith argues that consumer wants are never created by advertising or sophisticated sales strategies.

The consumer's main source of product information is

Deceptive advertising is always legal because we have freedom of speech.

The FTC now follows the reasonable-person standard in matters of advertising,sales and marketing.

Puffery is illegal.

Economists can prove,if we grant them enough assumptions,that free-market buying and selling lead to optimal results.One of those assumptions is that everyone has full and complete information,on the basis of which they then buy and sell.

Which of the following is an example of price gouging?

The goal of advertising is

The case of FTC v.Standard Education was important in the legal transition

What is the importance of the 1916 case of MacPherson v.Buick Motor Car?

Due care is the idea that consumers and sellers do not meet as equals and that the consumer's interests are particularly vulnerable to being harmed by the manufacturer,who has knowledge and expertise the consumer does not have.

Legal paternalism is the doctrine that the law should not be used to restrict the freedom of individuals for their own good.

What is the importance of Greenman v.Yuba Power Products?

When advertisers conceal facts,they suppress information that is unfavorable to their products.

Legal paternalism is the doctrine that the law

Defenders of advertising claim that,despite criticisms,advertising enjoys protection under the first Amendment as a form of speech.

What is due care?

Terms like "can be," "as much as," and "help," are examples of

The doctrine of caveat emptor means that the law may be justifiably used to restrict the freedom of individuals for their own good.

Critics of advertising generally agree that

The Nature of Morality

Normative Theories of Ethics

Justice and Economic Distribution

The Nature of Capitalism

Corporations

The Environment

The Workplace 1: Basic Issues

The Workplace 2: Todays Challenges

Moral Choices Facing Employees

Job Discrimination

Filters