According to One Theory, Advertising Sends a Signal to Consumers

question 532

Multiple Choice

According to one theory, advertising sends a signal to consumers about the quality of the product being offered. An implication of this theory is that

• A)the actual quality of the product is irrelevant.
• B)the content of the advertisement is irrelevant.
• C)advertising is not in the best interest of society.
• D)it is irrational for firms to pay famous people large amounts of money to appear in their advertisements.

---

Definitions:

Rebate

A partial refund given to someone who has paid too much for tax, rent, or a utility.

Mailbox Rule

The mailbox rule is a legal principle that an offer is considered accepted once the acceptance is properly placed in the mail, even if it is lost or delayed.

Effective Upon Dispatch

Effective upon dispatch refers to the principle that certain actions, such as the sending of a notification or document, are considered effective from the moment they are sent, not when they are received.

Reasonable Expectation

refers to what an average person might foresee or predict as a likely outcome under certain circumstances, often used as a standard in legal and ethical considerations.