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
Did the lifting of this ban likely increase or decrease the profits of hard liquor companies? Briefly explain.
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.
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The difference between the salaries paid to movie stars and to actors who play supporting roles is much greater today than it was in the 1930s and 1940s. What factor explains this increase in relative salaries over time?
A) There was no actors' union in the 1930s and 1940s. The rise of strong actors' unions has caused salaries of movies stars to be greater today than in previous years. B) Technological advances in the entertainment industry increase the revenue that successful movies can earn. This has increased the movie studios' willingness to pay high salaries to movie stars. C) The studio system that dominated the industry in the 1930s and 1940s no longer exists. The studio system allowed movie studios to sign actors to long-term contracts that kept salaries down. D) Agents of movies stars are effective in obtaining large salaries for their clients today. Few movie stars had agents to negotiate for them in the 1930s and 1940s.
High employment spurs economic growth because high employment
A) usually reduces inflation. B) discourages foreign imports. C) often leads to a high birth rate. D) often leads to high rates of investment.
Filling gaps in your information by generalizing based on observable characteristics is called:
A. statistical discrimination. B. signaling. C. building a reputation. D. proofing.
The prices that people are willing to pay for goods and services mostly depend on:
a. the total utility derived from the goods and services. b. the marginal utility derived from the goods and services. c. the availability of raw materials for producing the goods and services. d. the cost of producing the goods and services. e. whether the goods are legal, since the laws affect the position of both supply and demand curves.