Even Advertising That Appears to Contain Little Information About the Product

question 43

True/False

Even advertising that appears to contain little information about the product may be useful because it provides a signal about the quality of the product.

---

Definitions:

Whole Life Insurance

A type of insurance that combines a life insurance policy with an investment feature; policyholders pay a premium that is divided between the insurance portion and the investment portion.

Cash Value

The value of the investment portion of a whole life insurance policy.

S&P 500

A stock market index that measures the stock performance of 500 of the largest companies listed on stock exchanges in the United States.

Pre-Tax Retirement Account

A savings account designed for retirement that allows individuals to contribute pre-tax income, with taxes deferred until withdrawal.