BUS475 WEEK 2 KNOWLDGE CHECK

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1. Compared with other approaches to business, the marketing concept is distinct in that it
A. focuses on sales
B. produces new products and services
C. creates a broad assortment of products
D. focuses on satisfying customers' needs
Answer D
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Focusing Marketing Strategy with Segmentation and Positioning
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2. A company provides its advertising agency with a statement about a new product to use in designing an advertising campaign, and this statement includes a description of the target market, the product type, the primary benefits of using the product, and how this product is different from, and better than, competitive products. What type of statement is this?
A. Qualifying
B. Positioning
C. …show more content…

D. This will only affect the cost of capital if the firm uses CAPM to compute the cost of equity.
Answer C
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10. Buying and selling in more than one market to make a riskless profit is called
A. profit maximization
B. arbitrage
C. international trading
D. This cannot be determined from the above information.
Answer B
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Using Supply and Demand
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11. The United States imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely
A. decreased, causing the price of cigarette rolling machines to fall and the quantity of machines purchased to fall
B. decreased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to fall
C. increased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to rise
D. increased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to fall
Answer C
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The Short-Run Keynesian Policy Model: Demand-Side Policies
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12.
Keynes believed that an increase in savings would
A. raise aggregate demand by reducing investment
B. raise aggregate demand by increasing consumption
C. reduce aggregate demand by reducing investment
D. reduce aggregate demand by reducing consumption
Answer D
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13.