Which of the Following Is Not Put Forth as a Criticism

question 21

Multiple Choice

Which of the following is not put forth as a criticism of advertising and brand names?

• A) Advertising manipulates people's tastes to create a desire that otherwise would not exist.
• B) Advertising increases competition, which causes unnecessary bankruptcies and layoffs.
• C) Advertising increases brand loyalty, causes demand to be more inelastic and, thus, increases mark-up over marginal cost.
• D) Brand names cause consumers to perceive differences between goods that do not exist.
• E) Brand names are only relevant to high-priced products and so exclude other types of products

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Definitions:

Price Securities

Price securities involve determining the market value of financial instruments such as stocks, bonds, or derivatives based on supply and demand.

Asset Allocation

The process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash.

Portfolio Construction

The process of selecting a mix of assets tailored to an investor’s financial goals, risk tolerance, and investment horizon.

Debt Securities

are financial instruments representing money borrowed that must be repaid, typically including features such as fixed interest rates and maturity dates, examples include bonds and notes.