WHAT ROLE SHOULD CONSUMERS
PLAY IN THE ECONOMY
SECTION ONE: MULTIPLE CHOICE
1. Your choices as a consumer can affect
a.
b.
c.
d.
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the jobs people have
economic growth
the environment
all of the above
2. The Bandwagon Effect, Glittering Generalities and Plain Folks Appeal are all examples of
a.
b.
c.
d.
advertising techniques
government legislation
consumer choices
political cartoons
3. Which of the following is a decision by consumers to stop buying a product?
a.
b.
c.
d.
rejection
boycotting
empowerment
prosperity
4. Which of the following is an environmental organization that acts to change attitudes
and behaviors to protect the environment?
a.
b.
c.
d.
Greenday
Green Party
Green Peace
Go Green
Chapter 7: Exam
What roles should consumers play in the economy
5. Consumer spending plays an important role in
a.
b.
c.
d.
market economies
mixed economies
both a and b
neither a or b
6. Which of the following is an economic state of growth with rising profits and an increase
in job opportunities?
a.
b.
c.
d.
poverty
prosperity
consumerism
wealth
7. Which of the following countries has the highest GDP in North America?
a.
b.
c.
d.
Canada
Mexico
The United States
They all have equal GDP
8. One third of the waste in North America comes from
a.
b.
c.
d.
plastic
paper
computers
packaging
9. Which of the following is the largest human made hole on Earth?
a.
b.
c.
d.
Ekati mine in the Northwest Territories
Kennecott mine in Salt Lake City
Oil sands in Fort McMurray
Potash Corp in Sussex
Chapter 7: Exam
What roles should consumers play in the economy
10. Toxins such as formaldehyde and phenol come from
a.
b.
c.
d.
mining metals
plastic manufacturing
manufacturing of organic compounds
packaging
11. In 2006,, approximately how much did Canadians spend on products and services
a.
b.
c.
d.
$400 billion
$200 billion
$10 billion
$1 billion
12. Consumer’s decisions have consequences for
a.
b.
c.
d.
the price of products
product availability
quality of life
all of the above
13. Product labeling and mandatory use of seat belts are part of what type of legislation?
a.
b.
c.
d.
Consumer health and safety
Consumer reporting
Discriminatory Business Practices Act
Freedom of Information and Privacy Act
14. Which of the following statements about advertsing is incorrect?
a.
b.
c.
d.
Advertising tries to influence consumer behavior
The U.S. has no laws prohibiting false advertising
It is important to think critically about what ads say
Canada’s Competition Act sets out rules concerning advertising
Chapter 7: Exam
What roles should consumers play in the economy
15. Many environmentally friendly products such as organic foods and green cleaning
supplies were created in response to
a.
b.
c.
d.
government legislation
consumer demand
both a and b
neither a or b
Please use the following cartoons to answer questions 16-17
16. The middle portion of the graph on the cartoon indicates
a.
b.
c.
d.
An economic bust based on consumer spending
An economic bust based on producer cutbacks
An economic boom based on consumer spending
An economic boom based on producer marketing
17. The concern expressed by the cartoonist is
a.
b.
c.
d.
The economic boom will not stop
The economic boom is overly reliant on consumer spending
The economic bust is overly reliant on consumer credit
The economic bust will last longer than the economic boom
Chapter 7: Exam
What roles should consumers play in the economy
Please use the following cartoon to answer questions 18 and 19
18. A criticism of advertising made by the cartoonist in his portrayal is
a.
b.
c.
d.
Advertisers use too many techniques to market their prodcuts
Advertisers rely on the same techiques to market their products
Advertisers are too respectful to consumers in their advertising approaches
Advertisers are very creative in their approach to marketing products
19. Someone who works in advertising would support the approach used in the cartoon
a. Producers can mislead the public about products with no fear on government
penalties
b. Consumers only have themselves to blame, advertisers simply use techniques that
are proven to work
c. Producers always make every effort to be totally accurate in their advertising
campaigns
d. Consumers accept the fact that they are often mislead by advertising and it does not
bother them
Chapter 7: Exam
What roles should consumers play in the economy
Use the following cartoon to answer questions 20 and 21
20. The consumer is the cartoon could be characterzied as
a.
being easily manipulated by the sale price of a product
b.
not influenced by the price of the product
being easily manipulated by the characteristics of the product
not being influenced by the characteristics of the product
c.
d.
21. The husband in the cartoon is likely most concerned about
a.
b.
c.
d.
the potential for smart consumer choices based on quality of products
the potential for smart consumer choices based on market research
the potential for overspending on unnecessary items due to sale prices
the potential for overspending on necessary items due to market research
Chapter 7: Exam
What roles should consumers play in the economy
Use the following carton to answer question 22 and 23
22. The caption coming out of the home best illustrates
a.
b.
c.
d.
reasonable spending that takes place throughout the year
overspending that takes place throughout the year
reasonable spending that takes place during the holiday shopping season
overspending that takes place during the holiday shopping season
23. The caption coming from the man best illustrates
a. consumerism ensures that members in society have both their wants and needs met
b. consumerism ensures the equal distribution of products to consumers
c. consumerism does not ensure that everyone in society have their basic needs
addressed
d. consumerism does not ensure that all in society have their wants met
Chapter 7: Exam
What roles should consumers play in the economy
Use the following cartoon to answer questions 24 and 25
24. What common marketing ploy has the the consumer fell for in this cartoon
a.
the introductory offer
b. the bandwagon effect
c. the emulator achiever
d. the plain folks appeal
25. What economic reality does the cartoon portray?
a. The credit card company is lowering the interest rates after the promotional period
b. The credit card company is increasing the interest rate after the promotional period
c. The consumer was fully aware of the changes that would be taking place to the interest
rates
d. The consumer will be enjoying lower interest charges on future purchases using their credit
card
Chapter 7: Exam
What roles should consumers play in the economy
SECTION TWO: MATCHING
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26. Bandwagon Effect
27. Emotional Appeal
28. Glittering Generalities
29. Plain Folks Appeal
30. Testimonials
31. Scientific Appeal
32. Boycotts
33. Marketing
34. Belongers
35. Emulators
36. Needs Directed Consumers
37. Emulator-Achievers
38. Socially Conscious Achievers
39. The Competition Act
a. Processes used by manufacturers and service providers to place their good or
service in the public consciousness
b. Aims to uphold competition among products be ensuring fair business practices
c. A decision by consumers to stop buying a product or service as a way to bring about
change
d. Relates the product or services to words or images that promise everything, but
deliver little or nothing
e. Relates a product or service to the experience of ordinary people
f. Materialists who want the best of everything, about 20% of North American
population, feel at home with high priced, exclusive brands
g. Uses statistics and data to persuade consumers to buy a product or service
h. defend status quo, they are traditionalists and conservative 30% of consumers
i. Care more about inner peace, environment, safety than financial success, about 20%
of North American Population
j. Uses strong emotional language that connects you with your fears or desires
k. Use of celebrities or experts to speak for a product
l. Encourages you to buy or use a product or service because everyone else is
m. Young people, wannabees, 15% of North American market, will do anything to fit it
n. Welfare recipients, people on fixed incomes, minimum wage earners, senior citizens
on pension,ignored by advertisers, 15% of the North American market
Chapter 7: Exam
What roles should consumers play in the economy
SECTION THREE: TRUE AND FALSE
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40. Consumer behavior can affect the quality of life for individuals and groups in Canada.
41. The Canadian government cannot ban products. Banning products goes against the
rights of consumers as stated in the Charter of Rights and Freedoms.
42. Governments can encourage consumer spending by giving tax breaks.
43. The more people buy, the better it is for the economy and the environment.
44. Advertisers may use false advertising and misleading information about products or
services as a way of influencing consumers.
45. Boycotts are a relatively new way of taking action against issues of concern.
46. The prosperity of people affects how much they spend as consumers.
47. Laws in Canada and the U.S. state that producers must include as list of ingredients on
the food and cosmetic products they produce.
48. Canada has legislation limiting the amount of toxins that industries can release into the
atmosphere, but the U.S. does not.
49. Consumerism does not play an important role in a mixed economy.
SECTION FOUR: MULTIPLE CHOICE
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50. Define the concept of economic substitution. Explain the difference between voluntary
substitution and forced substitution, using an example to demonstrate each.
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51. Explain how product placement works. What are three examples of products that are commonly
advertised using this technique. What is product displacement?
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52. Explain how introductory offers are a useful tool for marketers. What are two potential dangers
for consumers who utilize introductory offers?
/3
53. What are PSA? What traditional advertising technique is the most commonly used in PSAs?
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Chapter 7: Exam
What roles should consumers play in the economy
54. You are the principal of a school, and the issue of banning junk food from the school is gaining
momentum. You want to be prepared for the arguments both sides will present at an upcoming
school council meeting.
Using the T chart provided on the back of the answer sheet, provide four arguments that both
sides would use to make their case about the potential banning of junk food.
You will receive
on mark for each accepted argument.
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Chapter 7: Exam
What roles should consumers play in the economy