The American Red Cross Created a Series of Advertisements to Encourage

question 58

Multiple Choice

The American Red Cross created a series of advertisements to encourage people to donate blood.After viewing an ad,Amanda went to the local Red Cross office and donated a pint of her blood.Amanda returned home feeling happy that she had performed a good deed.Was this an exchange in a marketing sense?

• A)Yes,because the blood was donated to the Red Cross based on an advertisement,a marketing activity.
• B)Yes,because the donated blood was exchanged for a feeling of satisfaction.
• C)No,because the Red Cross is nonprofit organization.
• D)No,because no money changed hands.
• E)No,because the Red Cross,a service organization,did not provide Amanda with a product.

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Definitions:

Increasing Returns to Scale

A situation in production where an increase in the quantity of inputs leads to a proportionally larger increase in output.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Geegaws

Decorative trinkets or gadgets that are often considered unnecessary or superficial.

Doodads

Non-essential, often whimsical objects that serve as decorative items or gadgets with no critical function.