Which of the following statements is incorrect?
a. Advertising can lower the costs to consumers of acquiring information
b. Advertising tends to increase competition in imperfectly competitive industries.
c. Even though advertising increases total production costs, it may indeed provide a useful service to consumers.
d. Advertising is only useful as a way to manipulate consumer tastes.
d
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When a nation starts importing a good or service, the domestic production of the good or service
A) decreases. B) stays the same. C) increases. D) might change, but more information about what the country exports is needed to determine if production increases, decreases, or does not change. E) might change, but more information about what else the country imports is needed to determine if production increases, decreases, or does not change.
Price discrimination is ________ in the United States and ________ practiced.
A. legal; rarely B. illegal; widely C. illegal; rarely D. legal; often
Low expected inflation leads to ________ increases in wages and costs and to ________ actual inflation.
A. small; low B. large; low C. large; high D. small; high
Suppose the economy is in equilibrium when there is a change in environmental policy that bans all pesticides and herbicides on farmland. We would expect to observe
A. a decrease in aggregate supply and an increase in aggregate demand. B. a decrease in both real output and the natural rate of unemployment. C. a decrease in real output and an increase in the price level. D. a decrease in real output and an increase in the natural rate of unemployment.