Which of the following methods used by advertising often signals a quality product?
a. bargain sales
b. unrealistic product claims
c. endorsement by a movie star
d. criticizing other brands
c. endorsement by a movie star
You might also like to view...
A circular flow model shows the interrelationship between the ________ market and the ________ markets
A) household; goods B) household; factor C) business; household D) expenditure; income E) goods; factor
In the figure above, suppose that Mac and Izzie trade and reach point c. Then
A) Mac produces outside his production possibilities frontier. B) Izzie produces outside her production possibilities frontier. C) Mac and Izzie both produce outside their production possibilities frontiers. D) neither Mac nor Izzie produce outside their production possibilities frontiers.
A 5 percent increase in income leads to a 10 percent decrease in quantity demanded for a service. This service is a(n) __________ good and demand is __________
a. normal; elastic b. normal; inelastic c. normal; unit elastic d. inferior; elastic e. inferior; inelastic
Increases in the fraction of national debt held by foreigners _____ the burden of debt service on future generations _____
a. decrease; because it is easier for the borrowing nation to default on the debt b. decrease; but may make the country more vulnerable to foreign intervention c. decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically d. increase; because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside e. increase; because foreign bondholding pushes up interest rates at the date of issue, increasing crowding out