Chapter 02 - Market Forces: Demand and Supply
55. Advertising provides consumers with information about the underlying existence or quality of a product. These types of advertising messages are called: A. persuasive advertising. B. informative advertising. C. green advertising. D. influential advertising. Answer: B Learning Objective: 02-01 Topic: Demand Blooms: Remember AACSB: Knowledge Application Difficulty: 01 Easy
56. Advertising can influence demand by altering the tastes of consumers. This type of advertising is known as: A. persuasive advertising. B. informative advertising. C. strategic advertising. D. influential advertising. Answer: A Learning Objective: 02-01 Topic: Demand Blooms: Remember AACSB: Knowledge Application Difficulty: 01 Easy
57. Which of the following statements is INCORRECT? A. As the population rises, the market demand curve shifts to the right. B. As a greater fraction of the population becomes elderly, the demand for medical services will tend to increase. C. Changes in the composition of the population affect the demand for a product. D. None of the statements associated with this question are incorrect. Answer: D Learning Objective: 02-01 Topic: Demand Blooms: Understand AACSB: Knowledge Application Difficulty: 02 Medium
58. If consumers expect future prices to be higher: A. they substitute current purchases for future purchases of perishable products. B. stockpiling will happen when products are durable. C. the position of the demand will not change. D. the demand for automobiles today will not change. Answer: B 2-17 Š 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.