According to one theory, advertising sends a signal to consumers about the quality of the product being offered. An implication of this theory is that
a. the actual quality of the product is irrelevant.
b. the content of the advertisement is irrelevant.
c. advertising is not in the best interest of society.
d. it is irrational for firms to pay famous people large amounts of money to appear in their advertisements.
b
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What is the present value of $10,000 to be received after one year, if the current annual rate of interest is 6%?
A) $8,644.26 B) $8,922.34 C) $9,433.96 D) $10,000
Holding your income and the price of lobster constant, you can derive your demand curve for steak from an indifference curve/budget line diagram by determining how your consumption of steak changes when the price of a steak changes
Indicate whether the statement is true or false
Which of the following correctly describes a shortage? Question 4 options:
A. Some buyers are unable to buy as much as they want at the current price. B. The quantity demanded equals the quantity supplied but the price is less than the equilibrium price. C. The quantity demanded equals the quantity supplied but the price is higher than the equilibrium price. D. The quantity demanded is less than the quantity supplied. E. Some sellers are unable to sell all they want to at the current price.
All of the following are examples of institutions that promote real economic growth EXCEPT
A. strong law enforcement used to protect business interests. B. patent laws that protect innovation. C. complex rules associated with business licensing used to promote careful business growth. D. an efficient judicial system used to enforce contracts.