Guarantees Are Most Effective in Two Situations

question 20

Multiple Choice

Guarantees are most effective in two situations. The first is when the company or products are not well known and the second is when the product's quality is ________ to competition.

• A) superior
• B) equivalent
• C) different
• D) not known
• E) inferior

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Definitions:

Ambrosia

In classical mythology, the food of the gods, which conferred immortality; in general usage, something very pleasing to taste or smell.

Plowshares

Metal blades fitted to a plow, used in farming to cut through the soil.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than other entities, leading to more efficient economic exchanges.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.