Question 1

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

Accepted Answer

A)   Covert advertising
B)   Skepticism
C)   Invectiveness
D)   Demarketing
E)   Puffery

Question 2

Which of the following statements about the Food and Drug Administration (FDA) is true?

Accepted Answer

A)   The FDA has authority over the labeling, packaging, and branding of all packaged foods and therapeutic devices.
B)   The FDA regulates only food and medications.
C)   The FDA does not require health food manufacturers to list the ingredients of their products on package labels.
D)   The FDA has no control over promotional statements on package labels.
E)   The FDA is a branch of the Federal Trade Commission (FT
C)  .

Question 3

Proponents of advertising say it fosters employment and gives consumers a wider variety of product choices.

Accepted Answer

A) True 
 B)False

Question 4

Define comparative advertising and discuss how the recent Trademark Law Revision Act affects it.

Accepted Answer

Comparative advertising is advertising i...

Question 5

The chief function of the consumer protection agencies found in many cities and counties is to protect local consumers.

Accepted Answer

A) True 
 B)False

Question 6

The ad for Transderm Scop patch,a remedy for motion sickness,states that it "is clinically proven more effective than Dramamine," a pill cure for motion sickness.The manufacturer of the Transderm Scop patch used _____ advertising.

Accepted Answer

A)   deceptive
B)   corrective
C)   unethical
D)   nonproduct
E)   comparative

Question 7

List the two operating arms of the National Advertising Review Council and briefly explain the function of each.

Accepted Answer

The NARC has two operating arms: the Nat...

Question 8

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

Accepted Answer

A)   Some observers believe that advertising actually restricts competition.
B)   Advertising is not a barrier to competition.
C)   Advertising is regulated so that it does not impede competition.
D)   Intense advertising often encourages the entry of new brands and manufacturers into the marketplace.
E)   Nonadvertised products cannot compete with advertised products.

Question 9

Which is the largest of the U.S.business-monitoring organization?

Accepted Answer

The largest of the U.S.busines...

Question 10

Of all the advertising media,which one conducts the strictest review of the advertising it carries?

Accepted Answer

Of all media,the TV ...

Question 11

_____ is defined as social action designed to dramatize the rights of the buying public.

Accepted Answer

A)   Demarketing
B)   Consumerism
C)   Social responsibility
D)   Socialization
E)   Externality

Question 12

Explain the following statement: "The economic effect of advertising is like the break shot in billiards or pool."

Accepted Answer

The moment a company begins to advertise...

Question 13

Cease-and-desist orders:

Accepted Answer

A)   are voluntary statements that have no legal ramifications.
B)   require that the FTC place a representative in the advertising department of the accused advertiser to monitor further campaigns.
C)   prohibit further use of the offending advertisement.
D)   are issued after the advertiser signs a consent decree.
E)   are not issued by the FTC.

Question 14

_____ advertising occurs when a consumer is "unjustifiably injured" or there is a "violation of public policy."

Accepted Answer

A)   Deceptive
B)   Corrective
C)   Unfair
D)   Covert
E)   Distracting

Question 15

_____ means doing what is morally right in a given situation.

Accepted Answer

A)   Subliminal advertising
B)   Ethical advertising
C)   Truth-in-advertising
D)   Ethical
E)   Covert advertising

Question 16

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

Accepted Answer

A)   the government is currently forming policy that will completely control this form of advertising.
B)   companies such as this will never be able to successfully expand worldwide where moral standards are higher than in the United States.
C)   trends will eventually change and the problem will take care of itself.
D)   companies like this one will eventually run out of money and the advertising will cease.
E)   if the ads don't pull in the audience, the campaign will falter and die because the marketplace has the ultimate veto power.

Question 17

.Recently,a car company and a designer teamed to create and market scarves.Ten dollars from the sale of each scarf was donated to the Susan G.Komen Breast Cancer Foundation.By helping find a cure for breast cancer,the car company is:

Accepted Answer

A)  manipulating the consumer.
B)  behaving in a socially responsible fashion.
C)  perpetuating a materialistic viewpoint.
D)  complying with federal regulations.
E)  initiating a market development strategy.

Question 18

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

Accepted Answer

A)   banning of puffery
B)   legislation against tobacco advertising
C)   establishment of the Children's Advertising Review Unit that wants to ban all advertising targeted to children
D)   need to avoid any semblance of stereotyping
E)   concern with political correctness

Question 19

A(n) _____ is a document that the advertiser accused of deceptive or unfair advertising signs,in which the advertiser agrees to stop the objectionable advertising.

Accepted Answer

A)   consent decree
B)   product substantiation claim
C)   cessation order
D)   ad sanctioning agreement
E)   guilt disclosure

Question 20

The largest of the U.S.business-monitoring organizations is the Better Business Bureau.

Accepted Answer

A) True 
 B)False

Exam 3: The Economic, Social, and Regulatory Aspects of Advertising

Cease-and-desist orders:

Correct AnswerverifiedShow Answer

The ad for Transderm Scop patch,a remedy for motion sickness,states that it "is clinically proven more effective than Dramamine," a pill cure for motion sickness.The manufacturer of the Transderm Scop patch used _____ advertising.

Correct AnswerverifiedShow Answer

The largest of the U.S.business-monitoring organizations is the Better Business Bureau.

Correct AnswerverifiedShow Answer

_____ is defined as social action designed to dramatize the rights of the buying public.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Define comparative advertising and discuss how the recent Trademark Law Revision Act affects it.

Correct AnswerverifiedComparative advertising is advertising i...View AnswerShow Answer

Which is the largest of the U.S.business-monitoring organization?

Correct AnswerverifiedThe largest of the U.S.busines...View AnswerShow Answer

The chief function of the consumer protection agencies found in many cities and counties is to protect local consumers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

_____ means doing what is morally right in a given situation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain the following statement: "The economic effect of advertising is like the break shot in billiards or pool."

Correct AnswerverifiedThe moment a company begins to advertise...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

.Recently,a car company and a designer teamed to create and market scarves.Ten dollars from the sale of each scarf was donated to the Susan G.Komen Breast Cancer Foundation.By helping find a cure for breast cancer,the car company is:

Correct AnswerverifiedShow Answer

Of all the advertising media,which one conducts the strictest review of the advertising it carries?

Correct AnswerverifiedOf all media,the TV ...View AnswerShow Answer

Proponents of advertising say it fosters employment and gives consumers a wider variety of product choices.

Correct AnswerverifiedShow Answer

Which of the following statements about the Food and Drug Administration (FDA) is true?

Correct AnswerverifiedShow Answer

List the two operating arms of the National Advertising Review Council and briefly explain the function of each.

Correct AnswerverifiedThe NARC has two operating arms: the Nat...View AnswerShow Answer

_____ advertising occurs when a consumer is "unjustifiably injured" or there is a "violation of public policy."

Correct AnswerverifiedShow Answer

A(n) _____ is a document that the advertiser accused of deceptive or unfair advertising signs,in which the advertiser agrees to stop the objectionable advertising.

Correct AnswerverifiedShow Answer

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Comparative advertising is advertising i...
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The largest of the U.S.busines...
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The moment a company begins to advertise...
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Of all media,the TV ...
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The NARC has two operating arms: the Nat...
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Correct Answer
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