One theory of advertising suggests that

a. advertising is more effective for industrial products than consumer products.
b. the content of advertising may be irrelevant to product success in the market.
c. regulations limiting advertising benefit consumers, but not producers.
d. television advertising is more effective in reducing competition than ads on websites.


b

Economics

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According to the Ricardo-Barro effect, government deficits

A) lead to a rise in the equilibrium real interest rate, crowding out investment. B) lead to simultaneous increases in private saving and no effect on the equilibrium real interest rate and investment. C) lead to simultaneous decreases in private saving and decreases in the equilibrium real interest rate and investment. D) lead to a fall in the equilibrium real interest rate and a rise in investment.

Economics

An increase in the money supply shifts the LM curve to the right, causing the interest rate to ________ and output to ________, everything else held constant

A) rise; rise B) rise; fall C) fall; rise D) fall; fall

Economics

Production possibilities frontiers are usually bowed outward. This is because

a. the more resources a society uses to produce one good, the fewer resources it has available to produce another good. b. the opportunity cost of producing a good decreases as more and more of that good is produced. c. of the effects of technological change. d. resources are specialized; that is, some are better at producing particular goods rather than other goods.

Economics

There is a technological advance in the production of digital watches. This will cause:

A. demand to increase. B. supply to increase. C. the price to increase. D. supply to decrease.

Economics