Which of the Following Statements About Advertising Is True

question 46

Multiple Choice

Which of the following statements about advertising is true?

• A) Advertising is personal communication from an identified sponsor using the mass media.
• B) Consumers perceive advertising as always having a high level of credibility.
• C) Advertising can be used to establish and reinforce a distinctive brand identity.
• D) Advertising tends to be comparatively inexpensive.
• E) Advertising always relies on factual information.

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy, indicating the cost of living or inflation rate.

Falling Prices

A situation in an economy where the prices of goods and services decrease over time.

Extraordinarily High Inflation

A situation where the rate of inflation becomes extremely high and uncontrollable, eroding purchasing power and destabilizing the economy.

Budget Deficit

The financial situation where government’s expenditures exceed its revenues within a specific time period, leading to borrowing or debt accumulation.