Economists’ economic-buyer theory assumes that:A. income data are very useful for predicting consumer behavior.B. buyers logically compare choices in order to maximize their satisfaction.C. consumers should purchase only low-priced products.D. consumers should purchase only high-priced products.Regarding the government market:A. sales reps generally do not (and should not) write the specifications for government business.B. government is the largest customer group in the United States–spending about 30% of the GDP.C. governments buy a lot, but only of certain products and can be safely ignored by most producers.D. negotiated contracts are uncommon because of mandatory bidding procedures.Regarding the business (manufacturing) market, small firms (with fewer than ten employees):A. are not very numerous compared to the very large firms.B. are the majority of all firms, but account for less than 3% of “value added” by manufacturing.C. account for the vast majority of the total employment provided by all manufacturers.D. amount to nearly two million establishments.Percy Malik, purchasing agent for Black Mountain Chemical Industries, routinely signs purchase orders for office supplies without further consideration. At Black Mountain, purchases of office supplies are:A. a modified rebuy.B. a necessity.C. somewhat insignificant commodity (SIC) items.D. a straight rebuy.What percentage of U.S. families received incomes of $112,638 and over in 2007?A. 20%B. 30%C. 40%D. 50%As the owner of a women’s clothing store, Karen Montenegro has an income of $75,000. She pays $30,000 per year in taxes and another $17,000 per year in grocery bills, house mortgage, and car payment. Last year she went to Italy and spent an additional $4,000. What was Karen’s discretionary income last year?A. $45,000B. $75,000C. $26,000D. $28,000
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