Critics of advertising argue that advertising by its very nature imposes a cost on society. Explain what these costs are
What will be an ideal response?
The argument is that large sums of money are spent to create minute, meaningless differences among products. Because of the money spent to create these differences the price of the product is increased. Advertising expenditures may also serve as a barrier to entry, as in the breakfast cereal industry.
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Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. Once free trade is allowed, Canada will produce
A) no clothing. B) 10 units of clothing. C) 20 units of clothing. D) 5 units of clothing.
The x-coordinate of an ordered pair specifies the
a. diagonal location of the point. b. vertical location of the point. c. horizontal location of the point. d. quadrant location in which the point is located.
Suppose that a firm operating in perfectly competitive market sells 300 units of output at a price of $3 each. Which of the following statements is correct? (i) Marginal revenue equals $3. (ii) Average revenue equals $3. (iii) Total revenue equals $900
a. (i) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)
Each of the governors of the Federal Reserve System is appointed for a term of __________ years. The Board of Governors is comprised of _____________ members and the FOMC is comprised of __________ members
A) 12; 7; 19 B) 14; 6; 22 C) 6; 5; 14 D) 14; 7; 12 E) 12; 6; 12