Question

name: class/period: date:course: marketing / marketing communicationsdirections: answer all questions. read each question carefully. use complete sentences where required.part i: multiple choice (1 point each)1. economics is best defined as the study of:a. advertising techniquesb. how people and businesses make choices with limited resourcesc. marketing strategies onlyd. business profits2. why is economics important to marketing?a. it determines employee schedulesb. it influences pricing, promotion, and product decisionsc. it replaces advertisingd. it eliminates competition3. demand refers to:a. how much a business can produceb. how much consumers want to buyc. the cost of productiond. government regulations4. when demand is high and supply is low, prices usually:a. decreaseb. stay the samec. increased. disappear5. competition in a market often leads to:a. higher prices and fewer choicesb. lower prices and better promotionsc. no marketingd. fewer products6. inflation is defined as:a. a decrease in pricesb. an increase in prices over timec. a period of economic declined. a rise in employment7. one effect of inflation on marketing is that businesses may:a. lower all pricesb. increase prices or reduce promotions

Explanation:

1. Economics focuses on scarcity and choice for limited resources.
2. Economics shapes core marketing mix decisions.
3. Demand describes consumer willingness to purchase.
4. High demand + low supply creates upward price pressure.
5. Competition drives businesses to lower prices and improve promotions.
6. Inflation is a sustained general price increase.
7. Inflation raises costs, leading to price hikes or cut promotions.

Answer:

1. B. How people and businesses make choices with limited resources
2. B. It influences pricing, promotion, and product decisions
3. B. How much consumers want to buy
4. C. Increase
5. B. Lower prices and better promotions
6. B. An increase in prices over time
7. B. Increase prices or reduce promotions