AEB Practice Exam 2 and HW 4, 5, 6 Questions With
Complete Solutions
A heart surgeon avoids buying unhealthy food in her household.
She focuses on buying and consuming food that is low in fat and
calorie content. This is an example of how a person's _____
might affect their decisions.
a. Role
b. Status
c. Norms
d. Culture
e. All of the answers are correct Correct Answers a. Role
A person starts buying and consuming salad simply because
everyone around him are doing so. This is an example of how
____ can affect the consumer decisions.
a. The Asch phenomenon
b. The status
c. The self-image
d. Ethnocentrism
e. Opinion leaders
f. None of the answers are correct Correct Answers a. The
Asch phenomenon
A retail store that sells larger quantities of a product for a price
discount is engaging in first degree price discrimination Correct
Answers False (this is second degree price discrimination)
A retailer buys apples from a farmer for $1.5/lb and sells them
in the store for $2/lb. What is the retailer's margin and markup in
this scenario?
, a. The margin is 33.33% and the markup is 25%
b. The margin is 25% and the markup is 33.33%
c. Both the margin and markup are 25%
d. The margin is 66.67% and the markup is 33.33%
e. The margin is 33.33% and the markup is 66.67% Correct
Answers b. The margin is 25% and the markup is 33.33%
A second price auction was set up to analyze consumer
preferences for avocados. Adam bids $2.5/lb for the avocadoes,
Sally bids $2.8/lb, Amy bids $2.6/lb, and Robert bids $2.9/lb.
The winner of the auction is ______ and the winner pays _____
for the avocadoes.
a. Robert; $2.8/lb
b. Robert; $2.9/lb
c. Sally; $2.8/lb
d. Sally; $2.9/lb
e. None of the answers are correct Correct Answers a. Robert;
$2.8/lb
A Ski resort in Colorado charges $65 entrance fee for adults and
$40 entrance fee for children under the age of 13. This is an
example of
a. First degree price discrimination
b. Second degree price discrimination
c. Third degree price discrimination
d. Fourth degree price discrimination
e. None of the answers are correct Correct Answers c. Third
degree price discrimination (discrimination based on different
consumer groups)
Complete Solutions
A heart surgeon avoids buying unhealthy food in her household.
She focuses on buying and consuming food that is low in fat and
calorie content. This is an example of how a person's _____
might affect their decisions.
a. Role
b. Status
c. Norms
d. Culture
e. All of the answers are correct Correct Answers a. Role
A person starts buying and consuming salad simply because
everyone around him are doing so. This is an example of how
____ can affect the consumer decisions.
a. The Asch phenomenon
b. The status
c. The self-image
d. Ethnocentrism
e. Opinion leaders
f. None of the answers are correct Correct Answers a. The
Asch phenomenon
A retail store that sells larger quantities of a product for a price
discount is engaging in first degree price discrimination Correct
Answers False (this is second degree price discrimination)
A retailer buys apples from a farmer for $1.5/lb and sells them
in the store for $2/lb. What is the retailer's margin and markup in
this scenario?
, a. The margin is 33.33% and the markup is 25%
b. The margin is 25% and the markup is 33.33%
c. Both the margin and markup are 25%
d. The margin is 66.67% and the markup is 33.33%
e. The margin is 33.33% and the markup is 66.67% Correct
Answers b. The margin is 25% and the markup is 33.33%
A second price auction was set up to analyze consumer
preferences for avocados. Adam bids $2.5/lb for the avocadoes,
Sally bids $2.8/lb, Amy bids $2.6/lb, and Robert bids $2.9/lb.
The winner of the auction is ______ and the winner pays _____
for the avocadoes.
a. Robert; $2.8/lb
b. Robert; $2.9/lb
c. Sally; $2.8/lb
d. Sally; $2.9/lb
e. None of the answers are correct Correct Answers a. Robert;
$2.8/lb
A Ski resort in Colorado charges $65 entrance fee for adults and
$40 entrance fee for children under the age of 13. This is an
example of
a. First degree price discrimination
b. Second degree price discrimination
c. Third degree price discrimination
d. Fourth degree price discrimination
e. None of the answers are correct Correct Answers c. Third
degree price discrimination (discrimination based on different
consumer groups)
