Regarding the Roles of Marketers and Consumers in Improving the Macro-Marketing

question 151

Multiple Choice

Regarding the roles of marketers and consumers in improving the macro-marketing system:

• A) Marketing managers should not be expected to improve and extend the range of goods and services they make available.
• B) The decisions that marketing managers make always increase the choices available to consumers.
• C) Consumer-citizens have the responsibility to vote for laws that place constraints on businesses, if those businesses harm the ecological system or make excessive demands on scarce resources.
• D) Marketers and consumers should decide in advance what products will be produced so as not to waste scarce resources.
• E) None of these alternatives is correct.

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Definitions:

M&M Proposition I

Modigliani and Miller Proposition I states that in a world without taxes, bankruptcy costs, and asymmetric information, a firm's value is unaffected by how it is financed, whether by debt or equity.

Law Of One Price

An economic theory that states that in efficient markets, identical goods must have only one price.

Technically Insolvent

A situation where an entity's liabilities exceed its assets, indicating it cannot currently meet its debt obligations with its available assets.

Firm's Assets

All the resources owned by a company, including cash, investments, property, and inventory, that have value and can be used to meet its financial obligations.