I am confused as android guide says two different things about the same thing.
It says the benefit of using developer account is that you don't have to upload an APK for static response testing.
On another note, it says, the static response testing only applies to app uploaded (not necesserly published).
SOOO Whats the correct answer: If I don't upload the apk and I use my developer account, I get the Not_Market_manager response. Does that mean I have to always upload my apk for testing?
Yes. Upload, but don't publish, the APK.