The case against advertising includes the fact that
A. firms spend large sums of money to create artificial differences among products.
B. it increases competition by decreasing barriers to entry of new firms into an industry.
C. it provides consumers with valuable information about product availability, quality, and price.
D. it ensures high quality and efficient production.
Answer: A
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Which of the following is true about an increase of a per-unit tax in a goods market where the good is quasilinear assuming neither supply nor demand is perfectly inelastic:
A. The more price elastic either demand or supply, the lower will be tax revenue. B. The more price elastic either demand or supply, the greater will be deadweight loss. C. The higher the tax rate, the greater the fraction of deadweight loss over revenue. D. Both (a) and (b) E. Both (b) and (c) F. Both (a) and (c) G. All of the above H. None of the above
The statistic most often used by economists to measure the value of economic activity is ________
A) GDP B) the CPI C) labor-force participation rate D) the nominal interest rate E) the real interest rate
What amount of money was appropriated by Congress for fiscal stimulus bill of 2009?
a. $225 billion b. $252 billion c. $700 billion d. $787 billion
If domestic production of a product causes pollution that imposes an external cost on the country, then
A. exports of the product should be subsidized. B. exports of the product are less than they would be otherwise. C. exports of the product can make the country worse off. D. exports of the product offset the external costs.