If Signalling Is Applied to Advertising

question 84

Multiple Choice

If signalling is applied to advertising:

• A)a firm with a good product reaps a relatively small benefit from advertising
• B)firms recognise the possibility of repeated customers
• C)it is irrational for a firm with a good product to pay for the cost of the signal
• D)all firms have the same incentive to advertise

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Definitions:

Proletariat

The class of wage-earners in a capitalist society, who, lacking substantial control over the means of production, sell their labor to live.

Bourgeoisie

The social class that owns the means of production during modern industrial capitalism, typically contrasted with the working class or proletarians.

Class Consciousness

The awareness of one's social class and the sense of shared interests with others in the same class, often in contrast to opposing classes.

Functional Imperatives

Fundamental needs that must be met in any social system for it to survive and operate efficiently, such as adaptation, goal attainment, integration, and latency.