Which of the Following Is Not Put Forth as a Criticism

question 21

Multiple Choice

Which of the following is not put forth as a criticism of advertising and brand names?

• A) Advertising manipulates people's tastes to create a desire that otherwise would not exist.
• B) Advertising increases competition, which causes unnecessary bankruptcies and layoffs.
• C) Advertising increases brand loyalty, causes demand to be more inelastic and, thus, increases mark-up over marginal cost.
• D) Brand names cause consumers to perceive differences between goods that do not exist.
• E) Brand names are only relevant to high-priced products and so exclude other types of products

---

Definitions:

Basal Metabolic Rate

The body's resting rate of energy expenditure.

Set Point

A theory suggesting that the body regulates certain variables, such as weight or temperature, around a specific value or "set point."

Ghrelin

A hormone produced in the stomach that stimulates appetite, promoting the intake of food by signaling the brain when the body needs energy.

Obestatin

A hormone believed to suppress appetite, produced in the stomach and intestines.