Defenders of advertising argue that firms use advertising as a signal of quality, even if the advertising delivers little helpful information about the product
a. True
b. False
Indicate whether the statement is true or false
True
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What has happened to countries that did not participate in the globalization of the world economy?
a. The fraction of the population living below the poverty line in these countries has decreased. b. These countries have been mired in a low-growth path and are experiencing high poverty rates. c. The socialist policies in these countries have caused a big change in the income distribution, something that globalization could not have achieved. d. The growth rate of these countries is stronger than the First World countries. e. The domestic industries in these countries have experienced robust growth.
As the price level falls
a. people will want to buy more bonds, so the interest rate rises. b. people will want to buy fewer bonds, so the interest rate falls. c. people will want to buy more bonds, so the interest rate falls. d. people will want to buy fewer bonds, so the interest rate rises.
A rightward shift in the demand curve for product C might be caused by:
A. a decrease in the price of a product that is complementary to C. B. a decrease in income if C is a normal good. C. an increase in income if C is an inferior good. D. a decrease in the price of a product that is a close substitute for C.
Refer to the information provided in Figure 28.8 below to answer the question(s) that follow.
Figure 28.8Refer to Figure 28.8. Along SRPC2, expected inflation equals
A. 4%. B. 5%. C. 6%. D. cannot be determined from the figure.