Economic Cycles and Consumer Behavior Quiz

Test your knowledge on economic cycles, consumer behavior theories, and factors influencing purchasing decisions.

#1

Which of the following is a characteristic of the expansion phase of the economic cycle?

High unemployment rates
Rising consumer confidence
Decreasing GDP
Low inflation rates
#2

During a recession, consumers are more likely to:

Increase spending
Decrease saving
Defer major purchases
Take on more debt
#3

Which of the following is NOT a factor that can influence consumer behavior?

Cultural background
Political climate
Personal values
Economic status
#4

In the context of consumer behavior, what does the term 'perception' refer to?

The physical act of buying a product
The process of making decisions based on available information
How individuals interpret and make sense of their environment
The evaluation of a product's features and benefits
#5

What is the term used to describe the tendency of consumers to purchase more of a good when its price falls?

Income effect
Substitution effect
Price elasticity
Law of demand
#6

Which factor does NOT typically influence a consumer's decision-making process?

Social influences
Political affiliations
Personal preferences
Cultural background
#7

What is the main function of the Federal Reserve during economic downturns?

Encourage borrowing and spending
Raise interest rates
Decrease the money supply
Stabilize the economy
#8

Which economic theory suggests that consumers will increase spending as their income rises?

Keynesian economics
Monetarism
Supply-side economics
Trickle-down economics
#9

Which theory of consumer behavior suggests that individuals seek to maximize their utility or satisfaction?

Behavioral economics
Rational choice theory
Social learning theory
Maslow's hierarchy of needs
#10

What is the primary focus of psychographic segmentation in marketing?

Demographic characteristics
Geographical location
Personality, values, and lifestyle
Purchasing behavior
#11

What is the term for the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors?

Market positioning
Market segmentation
Market targeting
Market penetration
#12

Which type of buying decision involves extensive research and evaluation of alternatives?

Routine response behavior
Limited decision making
Extensive decision making
Impulsive buying behavior
#13

What is a characteristic of the peak phase of the business cycle?

High inflation
Decreasing consumer spending
Rising unemployment
Maximum GDP growth
#14

Which type of consumer buying behavior involves low involvement and few differences between brands?

Complex buying behavior
Variety-seeking behavior
Habitual buying behavior
Dissonance-reducing buying behavior
#15

What is the term for the process of evaluating products and services based on their perceived benefits versus their costs?

Consumer evaluation
Consumer comparison
Consumer decision-making
Consumer value analysis
#16

Which type of buying decision involves little thought or consideration and is often made out of habit?

Complex buying behavior
Dissonance-reducing buying behavior
Variety-seeking behavior
Habitual buying behavior
#17

Which type of buying decision involves significant differences between brands and a high level of involvement from the consumer?

Variety-seeking behavior
Habitual buying behavior
Complex buying behavior
Dissonance-reducing buying behavior

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