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

---

Definitions:

Foreign Competition

The presence of competitors from other countries in a domestic market.

Tariffs

Taxes that a government places on imported goods, often to protect domestic industries or to raise revenue.

Quotas

Regulatory measures imposing limits on the amount or value of goods that can be traded, typically used in international trade.

Export Subsidies

Government payments made to domestic firms to encourage exports.