All of the Following Statements Are True About Television as an Advertising

question 327

Multiple Choice

All of the following statements are true about television as an advertising medium except which?

• A)Infomercials are increasingly popular because of the low average cost of a 30-minute block of television time.
• B)Many advertisers are now choosing less expensive "spot" ads,which run between programs,or 15-second ads,rather than the traditional 30- or 60-second lengths.
• C)Television advertising is preferred by many marketers because it avoids wasted coverage.
• D)Viewers are increasingly time-shifting their viewing habits with DVRs,DVDs,and subscription services such as Netflix.
• E)There are many opportunities for out-of-home TV viewing as televisions can be seen in many bars,hotels,offices,airports,and on college campuses.

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Definitions:

Excise Tax

A tax imposed on specific goods or services at purchase such as gasoline, tobacco, and alcohol.

Highly Inelastic

Describes a situation where the demand or supply for a good or service is hardly affected when the price changes.

Highly Elastic

Describes a situation where the demand or supply of a product changes significantly in response to changes in price.

Excise Tax

A tax on the sale or consumption of specific goods or services, such as alcohol or gasoline.