Which statement is true about advertising?
A. If you are a tomato grower you will make more profit by advertising widely.
B. Advertising is most useful if it is spent on new products of good quality.
C. It is best to spend advertising money on the products with the lowest quality and lowest consumer demand.
D. If John Kenneth Galbraith's "revised sequence" is correct, advertising is a waste of money.
Answer: B
You might also like to view...
"The real interest rate is found by dividing the nominal interest rate by the CPI." Is this statement true or false?
What will be an ideal response?
Government antitrust laws were designed to
a. encourage the production of public goods b. prevent natural monopolies c. prevent collusion among firms d. regulate natural monopolies e. correct the outcomes of positive and negative externalities in private markets
After an oil price shock, which of the following would move unemployment back towards its natural rate?
a. the Fed sells bonds b. the government raises taxes c. the government increases expenditures d. All of the above are correct.
According to the rational expectations theory the rate of inflation largely depends on
A. business expectations of interest rate levels. B. business expectations about international trade. C. what people expect to happen to prices. D. the unemployment rate.