The FDA Advises Consumers That

question 23

Multiple Choice

The FDA advises consumers that:

• A) a product that is labeled as "natural" and "non-toxic" is always safe to use.
• B) products based on "ancient remedies" are preferable to those based on modern "scientific breakthroughs."
• C) they should be suspicious of product claims that use impressive-sounding medical terms.
• D) an offer of a "money-back" guarantee from the manufacturer means the product is more likely to be effective.
• E) personal testimonials effectively back up scientific validity.

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Definitions:

Demand

The desire and ability of consumers to purchase goods or services at a given price over a specific period.

Multiproduct Break-even Analysis

An analysis technique used to determine the point at which total revenue equals total costs for multiple products, indicating no profit or loss.

Total Sales

The sum of all sales revenue that a company earns over a given period of time.

Discounted Value

The present value of a future amount of money or stream of income, adjusted for time and risk.