A Class-Action Lawsuit Was Brought Against a National Burger Chain

question 39

Multiple Choice

A class-action lawsuit was brought against a national burger chain, charging that its food contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but critics continue to point out the health dangers of many fast food menu items. From the description, it can be concluded that these critics are concerned that the fast food industry is ________.

• A) using high-pressure sales tactics
• B) creating deceptive promotions
• C) engaging in deceptive pricing
• D) utilizing misleading packaging
• E) selling harmful products

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Definitions:

Crowding Out

A decrease in investment that results from government borrowing.

Accelerator Effects

The phenomenon where an increase in national income leads to a proportionally larger increase in investment spending, magnifying the initial rise in income.

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust to counteract economic fluctuations without the need for government intervention.

Money Market

A section of the financial market where short-term financial assets with high liquidity are traded.