An externality associated with advertising of products legal only for a specified age group is that it
A. might be deemed boring by members of that specified age group.
B. might appeal to persons outside of that specified age group.
C. increases the time members of that specified age group spend watching TV and reading magazines.
D. all of the options are correct.
Answer: B
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A partnership can raise funds for expansion in which of the following ways?
A) issuing stock through secondary markets B) taking on more partners C) issuing stock through financial markets D) all of the above
After a temporary beneficial supply shock hits the economy, general equilibrium is restored by
A) a shift down and to the left of the IS curve. B) a shift to the left of the FE line. C) a shift up and to the left of the LM curve. D) a shift down and to the right of the LM curve.
The government weighs the potential cost savings resulting from a merger against the potential anticompetitive problems to determine whether or not to allow a merger to take place.
Answer the following statement true (T) or false (F)
All of the following are characteristics of a monopolistically competitive industry EXCEPT
A) homogeneous products. B) many firms. C) low barriers to entry and exit. D) sales promotion and advertising.