Marketing

question 153

Multiple Choice

Marketing:

• A) creates materialistic values which did not exist before.
• B) turns consumers into puppets.
• C) reflects existing social values in the short run-while reinforcing these values in the long run.
• D) focuses on "learned wants" rather than "genuine needs."
• E) None of these alternatives is correct.

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Definitions:

Positive Externalities

Benefits that affect parties who did not choose to incur that benefit.

Pareto Optimal

A state of distributing resources that precludes the possibility of augmenting the status of any participant or preference without detriment to another.

Positive Externalities

Benefits that are enjoyed by a third-party or society as a whole as a result of an economic transaction or activity, without them directly paying for it.

Utility Function

A mathematical representation that describes how consumers rank preferences among different commodity bundles.