Critics of advertising argue that in some markets advertising may
a. attract products of lower quality into the market.
b. attract less informed buyers into the market.
c. decrease elasticity of demand allowing firms to charge a larger markup over marginal cost.
d. enhance competition in markets to an unnecessary degree.
c
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Hughes and Cain (2011) give some credit to which of the following factors for the 1860–1910 increase in the number of people employed, shorter work days and higher real incomes?
(a) A decrease in the number of immigrants (b) A closed economy with no imports coming into or exports going out of the U.S. (c) Mechanical power and capital accumulation (d) All of the above
Use the following statements to answer this question: I. The income-consumption curve for perfect complements is a straight line. II. The price-consumption curve for perfect complements is a straight line
A) I and II are true. B) I is true and II is false. C) II is true and I is false. D) I and II are false.
The economic freedom associated with a market economy creates greater incentives for innovation and entrepreneurship than either a planned or a mixed economy.
a. true b. false
The production possibilities curve has:
A. a positive slope that increases as we move along it from left to right. B. a negative slope that increases as we move along it from left to right. C. a negative slope that decreases as we move along it from left to right. D. a negative slope that is constant as we move along it from left to right.