When advertising enhances the ability of markets to allocate resources, it is most likely:
a. manipulating people's tastes
b. increasing the brand loyalty of existing customers.
c. advertising about the existence of new products.
d. addressing psychological, rather than informational, characteristics of a good.
c
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Indicate whether the statement is true or false
Is calling a voter rationally ignorant the same as calling her irrational? Explain
The circular flow of income involves the idea that
A) the seller of a good receives exactly the same amount as the buyer spends. B) in every economic exchange one party takes advantage of the other party. C) the seller of a good receives more than the buyer spends. D) the seller of a good receives less than the buyer spends.
Suppose that the slope of a line tangent to the total cost curve at point X is equal to the slope of a line tangent to the total benefit curve at point X, then:
A. net benefit would be increased by reducing the amount of the activity. B. net benefit would be decreased by reducing the amount of the activity. C. net benefit would be increased by increasing the amount of the activity. D. net benefit is maximized.