When Demand for Goods and Services Is Stimulated by Advertising

question 50

Multiple Choice

When demand for goods and services is stimulated by advertising, the economic system of the country benefits by

• A) increased brand loyalty.
• B) an increase in the gross domestic product.
• C) increased inelasticity of demand.
• D) reducing the amount of money needed to compete within a product category.

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Definitions:

Torts

Legal wrongs committed against a person or property, excluding breach of contract, for which a court provides a remedy in the form of an action for damages.

Apparent Authority

The appearance or assumption of authority based on the conduct or statements of the principal, leading third parties to believe an agent has authority to act.

Unidentified Principal

A scenario in contract law where the identity of the principal is unknown to the third party at the time of agreement.

Actual Authority

The express or implied legal power given to an agent by a principal to undertake specific actions on the principal's behalf.