1. According to the text, which of the following is NOT a basic guideline for setting a firm's objectives?
A) Engaging in specific activities that will perform an economically useful function.
B) Identifying its current and prospective competitors.
C) Earning enough profit to survive.
D) Developing an organization to carry on the business and implement its strategies.
E) Ensuring that the firm's activities are socially useful.

2.Company objectives
A) should be set within the framework of marketing objectives.
B) are made redundant by mission statements.
C) should always be overly ambitious.
D) should only be revised every five years.
E) guide managers as they search for and evaluate opportunities.

3.Which of the following would NOT be a marketing strength for a local coffee shop?
A) A well recognized brand.
B) A patented coffee blend.
C) Established relations with local businesses.
D) Access to large amounts of capital from a long-term relationship with a local bank.
E) Counter staff that knows and understands customer preferences.

4.Regarding the competitive environment, a marketing manager usually can:
A) choose strategies to avoid head-on competition.
B) control it with the help of the legal environment.
C) control it in the short run.
D) control it with the help of the political environment.
E) control it in the long run.

5.Most product-markets head toward ______ over the long run.
A) pure competition
B) monopolistic competition
C) capitalistic competition
D) monopoly
E) collectivism

6.In monopolistic competition,
A) one firm completely controls a broad product-market.
B) each competitor tries to get control in its "own" target market.
C) competitors offer the same marketing mix.
D) different marketing mixes are nevertheless seen as the same by all customers.
E) all customers view various alternatives as substitutes.

7.Which of the following statements about nationalism is NOT TRUE?
A) Nationalism can be limiting in international markets.
B) A "Buy American" policy reflects nationalistic attitudes in the United States.
C) Nationalistic feelings can block all marketing activity in some international markets.
D) Nationalistic feelings always reduce sales.
E) Nationalism emphasizes one country's interests before everything else.

8.Identify the incorrect statement concerning the North American Free Trade Agreement (NAFTA).
A) NAFTA lays out a plan to reshape the rules of trade among the U.S., Canada, and Mexico.
B) NAFTA enlarges the free-trade pact that had already knocked down most barriers to U.S.-Canada trade.
C) NAFTA has already eliminated most barriers to U.S.-Mexico trade.
D) NAFTA prohibits moving of production and jobs from the U.S. to Mexico.
E) NAFTA establishes a forum for resolving future trade disputes.

9.The Sherman Act is primarily designed to:
A) prevent monopolies or conspiracies in restraint of trade.
B) stop the flow of foreign products into the United States.
C) prevent unfair or deceptive acts or practices in commerce.
D) reduce price discrimination by manufacturers.
E) eliminate deceptive selling practices.

10.A company would be charged with product warranty violations under:
A) the Total Quality Management Act
B) the Robinson-Patman Act
C) the Federal Trade Commission Act
D) the Magnuson-Moss Act
E) There are no laws regulating product warranties.

11.If Climbing High Ladder Company produced ladders that were unstable and caused many injuries, the ___ has the power to force the company to recall its product.
A) Consumer Product Safety Commission
B) Food and Drug Administration
C) Federal Trade Commission
D) Environmental Protection Agency
E) Consumer Protection Agency

12.A marketing analyst for a chicken processor reports that a rising percentage of people are eating chicken because it has less fat than beef. Clearly, this firm's opportunities may improve with this change in the
A) technological environment.
B) cultural and social environment.
C) economic environment.
D) political and legal environment.
E) competitive environment.

13.Which of the following statements about world population trends is true?
A) In general, countries that have higher stages of development experience faster rates of growth than less-developed countries.
B) The extent to which a country's population is clustered around urban areas does not vary much from country to country.
C) People are moving from rural areas into urban areas.
D) The trend toward urbanization has made companies less interested in international markets.
E) All of these statements about world population trends are true.

14.____ refers to the total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country.
A) Gross output
B) Gross investment
C) Gross national income
D) Gross fixed capital formation
E) Gross domestic product

15.Gross national income:
A) is the total market value of goods, but not services, produced in a year.
B) is an excellent basis for comparing consumer well-being across different cultures and economies.
C) is a widely used measure of income for different countries.
D) is the total market value of services, but not goods, produced in a year.
E) All of these are true.