Mastering Economics

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Questions and Answers

What is the difference between price discrimination and price skimming?

Price discrimination occurs when a firm charges the same price to all groups of consumers for an identical good or service, while price skimming involves charging a relatively low price for a short time for a new, innovative, or much-improved product
Price discrimination occurs when a firm charges a relatively low price for a short time for a new, innovative, or much-improved product, while price skimming involves charging different prices to different groups of consumers for an identical good or service
Price discrimination occurs when a firm charges a relatively high price for a short time for a new, innovative, or much-improved product, while price skimming involves charging different prices to different groups of consumers for an identical good or service
Price discrimination occurs when a firm charges different prices to different groups of consumers for an identical good or service, while price skimming involves charging a relatively high price for a short time for a new, innovative, or much-improved product (correct)

What is the difference between sales promotion and publicity?

Sales promotion refers to any activity designed to boost the sales of a product or service, while publicity refers to promotional activities designed to promote a business and its products by obtaining media coverage not paid for by the business (correct)
Sales promotion refers to increased PR activity, while publicity refers to a free-sample campaign
Sales promotion refers to door-to-door calling and telephone-selling, while publicity refers to arranging demonstrations or exhibitions and setting up competitions with attractive prizes
Sales promotion refers to promotional activities designed to promote a business and its products by obtaining media coverage not paid for by the business, while publicity refers to any activity designed to boost the sales of a product or service

What is the difference between short-term objectives and long-term objectives?

Short-term objectives are goals set for a period of one month, while long-term objectives are goals set for a period of one year
Short-term objectives are goals set for a period of more than one year, while long-term objectives are usually one-year objectives that often coincide with short-term objectives
Short-term objectives are goals set for a period of one year, while long-term objectives are goals set for a period of five years
Short-term objectives are usually one-year objectives that often coincide with long-term objectives, while long-term objectives are goals set for a period of more than one year (correct)

What is price discrimination?

<p>Charging different prices for the same product to different groups of consumers for reasons not related to costs. (C)</p> Signup and view all the answers

What is the purpose of test marketing?

<p>To test a new product with a sample of customers or launch it in a restricted geographical area to judge customers' reactions. (B)</p> Signup and view all the answers

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