Although advertising raises the price of a monopolistic competitor's product, it does confer a benefit to consumers. Which of the following is a benefit to consumers?
A) Advertised products tend to be of higher quality so consumers feel special when they consume advertised products.
B) Advertising engenders brand loyalty.
C) Advertising could provide consumers with useful information about new products and enable them to comparison shop.
D) Advertising acts as a barrier to entry.
C
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Environmental economics
a. is concerned mainly with the residual flow from economic activity back to nature b. focuses on the flow of resources from nature to economic activity c. recognizes that the flow of residuals back to nature is preventable d. none of the above
A decrease in U.S. federal government budget deficits that lowers U.S. interest rates relative to the rest of the world should
A) decrease net exports. B) increase foreign portfolio investment. C) lead to a current account surplus. D) lower the trade balance. E) cause the dollar to appreciate.
In a market where there are strong social and political forces:
A. quantity demanded might not equal quantity supplied. B. quantity demanded will be expected to equal quantity supplied. C. the invisible hand will overcome all other forces. D. the market will be in disequilibrium.
Which of the following is NOT a government response to asymmetric information?
A) liability laws B) social regulation C) manufacturer's warranties D) government licensing