Economists Defend Brand Names as Useful to Consumers Because Brand

question 523

Multiple Choice

Economists defend brand names as useful to consumers because brand names

• A)provide consumers with information about quality when quality cannot easily be judged in advance of purchase.
• B)give firms a financial incentive to maintain the high quality associated with their brand name.
• C)convince consumers to spend more for products nearly identical to generic versions.
• D)Both a and b are correct.

---

Definitions:

Catherine of Aragon

The first wife of Henry VIII of England and queen consort from 1509 to 1533, best known for her marriage's role in the start of the English Reformation.

Ignatius Loyola

Founder of the Society of Jesus (Jesuits), which was a significant force in the Counter-Reformation.

Catholic Reformation

A period of Catholic revival beginning in the late 16th century, in response to the Protestant Reformation, aiming to reform and renew the Roman Catholic Church.

Capuchins

An order of friars within the Catholic Church, known for their missionary work and simple lifestyle, identifiable by their distinct brown robes with large hoods.