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The __ for examining advertising is derived from the goal of society to promote behaviors that foster the greatest good for the most people:

utilitarian framework


According to the text, which of the following images best describes the chain reaction of economic events that takes place once a company begins to advertise?

the opening break shot in billiards


According to the text, externalities are:

social costs


How does advertising affect the value of a product?

the value of advertising explains why someone would buy the more expensive Bayer aspirin rather than the store brand of aspirin that treats the same symptoms.


Which of the following statements about how advertising affects price is true?

The consumer who buys the product pays for the advertising


Which of the following statements about how advertising affects competition is true?

Some observers believe that advertising actually restricts competition.


Ben and Berneice are going to the mall. Ben wants to buy a pair of jeans, and Berneice wants to buy a pair of Levi boot-cut jeans. Ben illustrates__demand while Berneice illustrates__demand.

Selective: Primary


The only effect advertising has on consumer demand is to:

slow the rate of product decline


Which of the following statements about the effects of advertising on the business cycle is true?

When business cycles are down, advertising may act as a stabilizing force.


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

keeps consumers informed on their selection alternatives


According to the__, if an economy produces more goods and service than can be consumed, advertising allows companies to compete more effectively for consumer dollars and keeps consumers informed of their selection alternatives.

abundance principle


__refers to exaggerated, subjective claims that can't be proven true or false.



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



The Little Giant Ladder System is advertised as "The strongest, safest most versatile ladder in the world" The advertiser is using:



Under current law, the only product claims that are considered deceptive are those that:

are factually false and have the potential to deceive or mislead reasonable people


Which of the following statements about deceptive advertising is true?

Puffery can be called deceptive advertising when consumers believe it to be true. `


The basi premise of __ is that advertisers intentionally create ads with sexual messages that are hidden in the illustrations just below the limen (the threshold of perception).

subliminal advertising


According to Wilson Bryan Key, subliminal advertising:

works through embedded messages that seduce consumers into buying the good or service


An ad shows a young woman latin in a meadow with small farmhouses dotting the landscape horizon. As she looks at the clouds and smoke coming form the chimneys of the farmhouses, the ad shows what appears to be the words "Soups On" in smoky letters coming from one of the chimneys. If campbell's soup were to run an ad such as this, the ad would be a form of which of the following

subliminal advertising


39. According to the owner of NPC & Associates, Maryland's largest African-American-owned ad agency, "If you were to come from another planet and watch American television, you would think that all black people did was play basketball and hang out on street corners and do rap music." He is accusing advertising of:

perpetuating sterotypes


40. Ever since the Napoleonic Wars, the British have used the term derogatory terms frogs to refer to the French. When the London-based Institut Francais advertised French language courses at all levels from beginners to advanced students, it pictured the development of a frog in stages from egg through tadpole to full maturity. This would be an example of:

sterotype perpetuation


41. With respect to offensiveness in advertising, Benetton ads frequently come under attack for its usage of nudity and sexual innuendo. Professionals indicate that the ultimate regulator of such ads is the fact that:

if the ads don't pull in the audience, the campaign will falter and die—the marketplace has the ultimate veto power


42. _____ means doing what the advertiser and the advertiser's peers believe is morally right in a given situation

ethical advertising


Advertisers that are socially responsible:

do what society views as best for the welfare of people in general


44. In 2005, Ford Motor Company and designer Lily Pulitzer teamed to produce a scarf. Ten dollar from the sale of each scarf was donated to the Susan G. Komen Breast Cancer Foundation. By helping find a cure for breast cancer, Ford is:

behaving in a socially responsible fashion


45. How has the U.S. Supreme Court defined the rights of advertisers under the First Amendment?

It has distinguished between "speech" and commercial speech."


1. For businesspeople that believe that freedom of commercial speech should be afforded equal protection under the First Amendment, the _____ is ominous.

legislation against tobacco advertising


47. To promote responsible children's advertising and to respond to public concerns, the Council of Better Business Bureaus established the:

Children's Advertising Review Unit (CARU)


Which of the following statements about consumer privacy issues is true?

None of the above statements about consumer privacy issues is true.


The Federal Trade Commission (FTC) regulates:

advertising for products sold in interstate commerce