Firms pay famous individuals to endorse their products because
A) famous people only consume high-quality products.
B) apparently demand is affected not just by the number of people who use a product but also by the type of person that uses the product.
C) famous people obviously know what are the best goods and services.
D) the firms are irrational and are wasting advertising expenditures.
B
You might also like to view...
If financial turmoil overseas reduces U.S. net exports, then those in favor of "lean against the wind policies" would advocate
a. decreasing the money supply and cutting taxes. b. decreasing the money supply and raising taxes. c. increasing the money supply and cutting taxes. d. increasing the money supply and raising taxes.
The most commonly used metric for measuring the value of a national economy is:
A. gross national income, or GNI. B. gross national product, or GNP. C. gross domestic product, or GDP. D. gross domestic income, or GDI.
Explain the paradox of voting that is illustrated in the table below in choices between the same expenditure on three different public goods. The numbers under each name indicate the voting preferences (first, second, or third choice) of each of the
three citizens in the society.
The curve showing all the combinations of inputs that can be purchased with a given outlay of funds is called a(n)
A. isoquant. B. total cost curve. C. production function. D. isocost.