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| 1 | |
One advantage of the free-market system is that consumers can choose the values they want in the products they buy. |
| | A) | True |
| | B) | False |
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| 2 | |
One of the more common short-term criticisms of advertising is that it is frequently deceptive. |
| | A) | True |
| | B) | False |
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| 3 | |
As our culture has matured, we, as consumers, are not likely to view ads as offensive. |
| | A) | True |
| | B) | False |
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| 4 | |
The largest of the federal government's business-monitoring organizations is the Better Business Bureau. |
| | A) | True |
| | B) | False |
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| 5 | |
The _____ states that in an economy that produces more goods and services than can be consumed, advertising keeps consumers informed of their alternatives and allows companies to compete more effectively for consumer dollars. |
| | A) | advertising paradigm |
| | B) | iceberg principle |
| | C) | abundance principle |
| | D) | principle of consumer domain |
| | E) | accelerator principle |
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| 6 | |
The concept of speech versus commercial speech is of greatest significance when determining the legitimacy of advertising for: |
| | A) | tobacco |
| | B) | new car models |
| | C) | specialty magazines |
| | D) | consumer packaged goods |
| | E) | raw material such as coal, iron ore, and unrefined oil |
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| 7 | |
The FTC alleged that NordicTrack, Inc. had made unsubstantiated weight loss claims in its "Change Your Life with NordicTrack" print ads. The Commission challenged a number of claims that the company made about the percentage of purchasers of its cross-country ski exerciser who lost weight, the amount of weight they lost, how long they maintained their weight loss, and how much exercise was needed to achieve an average weight loss of eighteen pounds in twelve weeks. The "eighteen pounds in twelve weeks" weight-loss claim was based on the amount of weight loss reported only by persons who completed a rigorous twelve-week exercise program that nearly half the participants failed to complete. Also, the studies failed to take into account changes in purchasers' dietary habits and may have been subject to bias by relying on self-reported body weight. In other words, Nordic Track was guilty of _____ advertising. |
| | A) | deceptive |
| | B) | corrective |
| | C) | unethical |
| | D) | nonproduct |
| | E) | comparative |
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| 8 | |
Commercials for reducing or eliminating a condition called restless leg syndrome (RLS) started to appear on television in 2006. A medication was found to be an effective cure for the problem. It was not a new medication, but one that had been around for quite awhile as a treatment for Parkinson's disease. What agency was responsible for ensuring that this drug could also safely be prescribed for RLS? |
| | A) | the Library of Congress |
| | B) | the Patent and Trademark Office |
| | C) | the Food and Drug Administration |
| | D) | the United States Post Office |
| | E) | the Federal Communications Commission |
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| 9 | |
The major federal regulator of advertising for products sold in interstate commerce is the: |
| | A) | Federal Communications Commission |
| | B) | U.S. Postal Service |
| | C) | Food and Drug Administration |
| | D) | Better Business Bureau |
| | E) | Federal Trade Commission |
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| 10 | |
What can happen when a trademark owned by one company is persistently used by another company? |
| | A) | The FCC will issue a restraining owner. |
| | B) | The FTC will require corrective advertising be run. |
| | C) | The state attorney general will punish the company that is acting illegally, whether the owner of the trademark requests it or not. |
| | D) | It is the duty of the company that owns the trademark to seek legal redress. |
| | E) | The NAD will determine if the trademark use is actually illegal. |
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| 11 | |
What is the source of much of today's state regulation of advertising? |
| | A) | the truth-in-advertising model statute developed by Printer's Ink |
| | B) | the mission statement of Volney B. Palmer's advertising agency |
| | C) | Benjamin Franklin |
| | D) | the Supreme Court's statement of commercial speech |
| | E) | the Magna Carta |
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| 12 | |
Most people consider the most important self-regulation of advertising is the code developed by: |
| | A) | Volney B. Palmer |
| | B) | Benjamin Franklin |
| | C) | the Council of Better Business Bureau |
| | D) | the Federal Trade Commission |
| | E) | consumerism movement of the 1960s |
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