Consumer satisfaction, monopolies, FTC, Sherman Act

Question 1
Which Federal antimonopoly law specifically addresses deceptive ads or selling practices?

a.Sherman Act
b.Clayton Act
c.Federal Trade Commission Act
d.Antimerger Act
e.Magnuson-Moss Act

Question 2
Consumer satisfaction:

a.is the basic objective of all economic systems.
b.is easier to measure at the macro-level than at the micro-level.
c.depends on one's own expectations and aspirations.
d.is hard to define.
e.is totally unrelated to company profits.

Question 3
Regarding our MACRO-marketing system, the text suggests that:

a.consumers' freedom of choice should be reduced--for the good of society.
b.some changes may be necessary--but consumer-citizens should vote on these changes.
c.marketing managers should limit consumers' freedom of choice.
d.All of the above.
e.None of the above.

Question 4
Given the U.S. economy's basic objective, the best measure of the effectiveness of the U.S. macro-marketing system is:

a.GDP growth.
b.the equality of income distribution.
c.how efficiently resources are used.
d.how many new products are introduced.
e.the level of consumer satisfaction.

Question 5
The monopolistic competition that is typical of the U.S. economy:

a.always leads to higher prices, but it may not lead to higher consumer satisfaction.
b.is a problem because it does not result in products that reflect consumer's social values.
c.is the result of consumer preferences.
d.is the result of manipulation of markets by business firms.
e.All of the above are true.

Question 6
The Sherman Act and the Federal Trade Commission Act:

a.were passed to make it difficult for small companies to win customers away from large companies.
b.are not taken seriously, since there are no penalties for violations.
c.are quite different, with the FTC Act focusing on stopping deceptive business practices and the Sherman Act focusing on controlling monopolies.
d.are just different names for the same thing--a law proposed by Sherman to establish the Federal Trade Commission.
e.were passed to protect consumers from abuses by business, rather than to protect some businesses from others who had an "unfair" advantage.

Question 7
Which of the following statements about marketing does the text make?

a.Micro-marketing never costs too much.
b.Macro-marketing does not cost too much.
c.Marketing is not needed in all modern economies.
d.Micro-marketing always costs too much.
e.Macro-marketing does cost too much.

Question 8
The Sherman Act sought to:

a.prevent monopolies or conspiracies in restraint of trade.
b.establish the Federal Consumer Protection Agency.
c.eliminate price differences among different competing suppliers.
d.prevent fraud on the Internet.
e.restrict importing into the United States.

Question 9
Which of the following laws is primarily concerned with product warranties?

a.the Sherman Act
b.the Robinson-Patman Act
c.the Federal Trade Commission Act
d.the Magnuson-Moss Act
e.There are no laws regulating product warranties.

Question 10
The best way to improve the operation of our MACRO-marketing system--given the current objectives of our society--is:

a.to encourage marketing managers to produce only what they feel is good for consumers.
b.to eliminate intermediaries.
c.to do better marketing strategy planning and implementation.
d.to spend more on advertising.
e.to move toward a command economy.