Economists defend brand names as useful to consumers because brand names
a. provide consumers with information about quality when quality cannot easily be judged in advance of purchase.
b. give firms a financial incentive to maintain the high quality associated with their brand name.
c. convince consumers to spend more for products nearly identical to generic versions.
d. Both a and b are correct.
d
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Measured in 1990 dollars, the GDP per person of the world was $667 in 1820 . By 2003, the world's income per person had risen to
a. nearly $1200, almost twice the level of 1820. b. $2,422, almost four times the level of 1820. c. a little more than $3,600, approximately six times the level of 1820. d. $6,516, nearly ten times the level of 1820.
In classical growth theory, if real GDP per person is above the subsistence level,
A) population grows and lowers real GDP per person to its subsistence level. B) the pursuit of profit will cause economic growth to accelerate. C) technological growth occurs and keeps real GDP per person above its subsistence level. D) the economy will keep growing without limit. E) None of the above is correct because the classical growth theory asserts that real GDP per person can never exceed the subsistence level.
Democracy tends to push politicians toward the ideal point of the ______ voter.
A. median B. first C. final D. representative
Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country. B. creates cultural and social differences among groups in developing countries. C. produces excessive levels of domestic saving. D. redistributes income.