Question 1

A ladder is advertised as "The strongest,safest most versatile ladder in the world." The advertiser is using:

Accepted Answer

A)   unfair advertising.
B)   covert advertising.
C)   deceptive advertising.
D)   puffery in advertising.
E)   exploitative advertising. D

Question 2

When Melissa looked at the container of weed and grass killer,she saw a notice that read,"Avoid contact with eyes.This product can cause eye irritation." This _____ would be important to all of us who wanted to take the best possible care of our eyes.

Accepted Answer

A)   package requirement
B)   testimonial of goodness
C)   nutritional claim
D)   substantiation
E)   affirmative disclosure E

Question 3

The _____ has indirect control over advertising through its authority to license or revoke the license of all broadcasting stations.

Accepted Answer

A)   Federal Trade Commission
B)   Federal Communications Commission
C)   Better Business Bureau
D)   National Advertising Review Council
E)   Office of Consumer Affairs B

Question 4

A trademark:

Accepted Answer

A)   is any word, name, symbol, or device, or combination thereof, which identifies one particular product or line of products from a single source.
B)   prevents the whole ad from being legally used by another.
C)   is required by law to be significantly different from the trade name of the organization that owns the trademark.
D)   is registered and protected by the Library of Congress.
E)   grants exclusive rights to the trademarked material for the life span of its owner plus an additional 50 years.

Question 5

Some years ago an ad for a discount store said the retailer was selling a pair of diamond earrings that had been reduced from their regular price of $1,199 to $399.Upon investigation,it was discovered that there was no evidence that the store had ever sold the earrings at the "regular" price.This ad was an example of _____ advertising.

Accepted Answer

A)   deceptive
B)   corrective
C)   demarketing
D)   nonproduct
E)   comparative

Question 6

Ben and Bernice are going to the mall.Ben wants to buy a regular pair of jeans,and Bernice wants to buy a pair of boot-cut jeans.Ben illustrates _____ demand while Bernice illustrates _____ demand.

Accepted Answer

A)   selective; primary
B)   essential; desired
C)   external; internal
D)   economic; luxurious
E)   primary; selective

Question 7

Advertisers today do not perpetuate male and female stereotypes in their ads.
Many advertisers are just not aware of the externalities that their ads can create,and some may perpetuate male and female stereotypes without even realizing it.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about deceptive advertising is true?

Accepted Answer

A)   Puffery can be called deceptive advertising when consumers believe it to be true.
B)   Deceptive advertising is sometimes used because it establishes long-term consumer confidence in the product being advertised.
C)   To be labeled as deceptive, ads must contain some false or misleading statement.
D)   Deceptive ads serve the best interests of the advertisers.
E)   There are no regulations governing deceptive advertising.

Question 9

The only effect advertising influencing selective demand will have in declining markets is:

Accepted Answer

A)   creating trade barriers that prevent new competitors from entering the marketplace.
B)   slowing the rate of decline.
C)   moving the product quickly to the point in the product life cycle where advertising can be replaced by more IMC.
D)   reducing the diffusion process.
E)   creating a pioneering advantage.

Question 10

A complaint was filed with the Federal Trade Commission that accused the film industry regularly advertised R- rated movies during television shows and in magazines most popular with children.In other words,the FTC investigated to see if the film industry was guilty of:

Accepted Answer

A)   acquisitiveness.
B)   unfair advertising.
C)   deceptive advertising.
D)   an ethical dilemma.
E)   anti-competitive advertising.

Question 11

A complaint against advertising based on how signage obstructs the view of the natural environment along interstates is an example of a(n):

Accepted Answer

A)   flawed communications linkage.
B)   absence of externalities.
C)   deceptive micro argument.
D)   long-term macro argument.
E)   acquisitiveness of consumers.

Question 12

List the three courses of action open to the Federal Trade Commission (FTC)once it has determined an ad is deceptive or unfair.

Accepted Answer

The answer of List the three courses of action open...

Question 13

Advertising adds value to a brand by educating customers about new uses for a product.

Accepted Answer

A) True 
 B)False

Question 14

A magazine ran ads in an in-flight magazine offering real caviar at substantially lower prices than it typically sold for.Later,FTC investigators determined the caviar that was being sold as exotic caviar was produced in the U.S.and was actually overpriced given its quality.The magazine engaged in:

Accepted Answer

A)   an ethical lapse.
B)   puffery in advertising.
C)   deceptive advertising.
D)   an ethical dilemma.
E)   anti-competitive advertising.

Question 15

How does advertising add value to a brand?

Accepted Answer

The answer of How does advertising add value to a...

Question 16

The abundance principle states that in an economy that produces more goods and services than can be consumed,advertising:

Accepted Answer

A)   maintains high prices.
B)   keeps consumers informed of their selection alternatives.
C)   contributes to the earth's waste disposal problem.
D)   prevents companies from successfully competing for consumer dollars.
E)   acts as a stabilizing factor during a business cycle downturn.

Question 17

What is a trademark?

Accepted Answer

The answer of What is a trademark?...

Question 18

In an economy where there is an abundance of goods and services,advertising serves two purposes:

Accepted Answer

A)   Complete information and self-interest.
B)   Selective demand and primary demand.
C)   Complete information and absence of externalities.
D)   Deceptive advertising and comparative advertising.
E)   Deceptive advertising and corrective advertising.

Question 19

When the city of Pensacola,Florida,advertises itself as "the perfect place for the perfect Florida vacation," it is using:

Accepted Answer

A)   unfair advertising.
B)   demarketing.
C)   deceptive advertising.
D)   puffery in advertising.
E)   exploitative advertising.

Question 20

Consumer advocate groups investigate advertising complaints received from the public and those that grow out of their own research.

Accepted Answer

A) True 
 B)False

Exam 3: The Economic, Social, and Regulatory Aspects of Advertising

A ladder is advertised as "The strongest,safest most versatile ladder in the world." The advertiser is using:

When Melissa looked at the container of weed and grass killer,she saw a notice that read,"Avoid contact with eyes.This product can cause eye irritation." This _____ would be important to all of us who wanted to take the best possible care of our eyes.

The _____ has indirect control over advertising through its authority to license or revoke the license of all broadcasting stations.

A trademark:

Ben and Bernice are going to the mall.Ben wants to buy a regular pair of jeans,and Bernice wants to buy a pair of boot-cut jeans.Ben illustrates _ demand while Bernice illustrates _ demand.

Advertisers today do not perpetuate male and female stereotypes in their ads. Many advertisers are just not aware of the externalities that their ads can create,and some may perpetuate male and female stereotypes without even realizing it.

Which of the following statements about deceptive advertising is true?

The only effect advertising influencing selective demand will have in declining markets is:

A complaint was filed with the Federal Trade Commission that accused the film industry regularly advertised R- rated movies during television shows and in magazines most popular with children.In other words,the FTC investigated to see if the film industry was guilty of:

A complaint against advertising based on how signage obstructs the view of the natural environment along interstates is an example of a(n) :

List the three courses of action open to the Federal Trade Commission (FTC)once it has determined an ad is deceptive or unfair.

Advertising adds value to a brand by educating customers about new uses for a product.

A magazine ran ads in an in-flight magazine offering real caviar at substantially lower prices than it typically sold for.Later,FTC investigators determined the caviar that was being sold as exotic caviar was produced in the U.S.and was actually overpriced given its quality.The magazine engaged in:

How does advertising add value to a brand?

The abundance principle states that in an economy that produces more goods and services than can be consumed,advertising:

What is a trademark?

In an economy where there is an abundance of goods and services,advertising serves two purposes:

When the city of Pensacola,Florida,advertises itself as "the perfect place for the perfect Florida vacation," it is using:

Consumer advocate groups investigate advertising complaints received from the public and those that grow out of their own research.