When Discussing the Role of Brands as Signals of Quality

question 58

Multiple Choice

When discussing the role of brands as signals of quality and consistency, one can conclude that brands:

• A)Act as incentives to provide consistent or high quality
• B)Act as disincentives to provide high-quality products
• C)Act as signals for high prices
• D)Act as incentives for elitism

Recognize the concept of opportunity cost and how it influences choices.

Identify the principles of rational decision-making at the margin.

Apply concepts of costs (sunk costs, marginal costs) to real-world scenarios affecting economic decisions.

Grasp the importance and benefits of trade and specialization for individuals and economies.

---

Definitions:

Conditioned Response (CR)

A learned response to a previously neutral stimulus that has become conditioned through association with an unconditioned stimulus.

Conditioned Response (CR)

A learned response to a previously neutral stimulus that has been repeatedly paired with an unconditioned stimulus.

Classical Conditioning

Classical conditioning is a learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Conditioned Stimulus (CS)

A stimulus that was once neutral but, after being paired with a fundamental stimulus, ultimately induces a learned reaction.