Which of the following might be an example of an economic argument against advertising?
a. It causes the demand for the good to be more elastic
b. It allows the producer to earn an economic profit in the long run
c. People may be deluded into thinking that a good with a brand name is better than an otherwise identical generic brand
d. The claims made in the ads are almost always false
c
You might also like to view...
Two events A and B in a sample space are considered _____ if the probability that A will happen is the same regardless of whether or not B has happened
a. conditional b. correlated c. independent d. exclusive
The supply curve slopes
A. upward to the right. B. upward to the left. C. downward to the right. D. downward to the left.
Which of the following is a possible critique of the decision theory under uncertainty presented in the text?
A. Decision theory assumes that people face the same situation (uncertainty) repeatedly. B. Decision theory assumes that people are good at math. C. People are not risk averse. D. People do not always know the "true" probability of complicated events.
Generally, if a nation produces more consumer goods than capital goods
A) more of all goods may be produced in the future. B) less of all goods may be produced in the future. C) about the same amount of capital goods may be produced in the future as are being produced today. D) society will have to forego future consumption of capital goods.