Question

Question 1

Statements like "All Natural"

a	means the product contains no high fructose corn syrup.

b	are currently being challenged in the courts.

c	are a form of puffery.

d	have technical meanings that are defined by the FDA.

Question 2

What best characterizes the ultimate criterion used by the FDA to determine whether or not to allow a label on the packaging of a food product?

a	Does it effectively communicate?

b	Does it improve consumer welfare?

c	Is it misleading?

d	Is it informative?

Question 3

What is true about qualified health claims?

a	Consumers find them informative.

b	They are written carefully by the FDA.

c	They are frequently used.

d	They are based on conclusive evidence.

Question 4

Attributes that are revealed but only after purchase, such as taste, are

a	hidden attributes.

b	search attributes.

c	experience attributes.

d	credence attributes.

Question 5

An example of a credence attribute is

a	firmness of an apple

b	the price of the apple

c	taste of an apple

d	vitamin C in an apple

Answer 1

1.

D

All natural is carefully defined by USDA and FDA, that all ingredients should be natural and least processed among the other criteria to make it all natural.

2.

B

It is the consumer welfare that is thought of by the FDA before asking to put a label.

3.

D

Qualified health claims are the based on scientific evidence, though it may not meet the actual standards.

4.

C

Taste as attribute is experience attribute because it can only be experienced after the use.

5.

D

Presence of vitamin C cannot be felt even if the product is consumed. So, it is a credence attribute.