On November 7, 1996, the Distilled Spirits Council of the United States decided to end its voluntary ban on television and radio liquor advertisement. The ban on hard liquor advertising had been in effect since 1936 for radio and 1948 for television

Assuming that advertising is a prisoner's dilemma, and that if one company advertises, its competitors will also choose to spend money to advertise, did the lifting of this ban likely increase or decrease the profits of hard liquor companies? Briefly explain.

What will be an ideal response?


If advertising is a prisoner's dilemma, then lifting the ban on advertising hard liquor on television and radio likely decreased the profits of hard liquor companies following the lifting of the ban.

Economics

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Economics

Why might an economist argue that it could be damaging to the economic growth of a nation if it focused mostly on the production of consumer goods?

What will be an ideal response?

Economics

Prior to 1980, member banks left the Federal Reserve System due to

A) the high cost of discount loans. B) the high cost of required reserves. C) a desire to avoid interest rate regulations. D) a desire to avoid credit controls.

Economics

The Fed's objectives present it with a true dilemma when

a. there are demand shocks caused by shifts in money demand b. there are demand shocks caused by changes in spending c. there are negative supply shocks d. cyclical unemployment exists e. there is member bank opposition

Economics