How Do Economists Explain the Value Firms and Consumers Place

question 150

Multiple Choice

How do economists explain the value firms and consumers place on brand names?

• A) Brand names show that firms can easily manipulate consumers.
• B) Brand names are a way firms can provide information about quality to consumers.
• C) Brand names are a way of turning private goods into public goods, increasing their value to both seller and buyer.
• D) Brand names are an example of adverse selection, by which producers advertise the options to consumers.

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Definitions:

Basic Activities

Fundamental tasks, often referring to daily self-care activities such as eating, dressing, and personal hygiene.

Daily Living

Activities that are performed as part of one's everyday life, including personal care, mobility, and eating.

Dresses Self

The ability of an individual to perform the task of putting on clothes independently, often used as a milestone in child development.