What Is the Preferred Way for the Promotion Director to Acquire

question 29

Multiple Choice

What is the preferred way for the promotion director to acquire prizes?

• A) The station cannot give out "prizes", which are forbidden by the FCC.
• B) By arranging to give out only cash prizes to winners
• C) Through direct purchase and trades
• D) By soliciting donations from listeners

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Definitions:

External Benefits

Positive effects of a production or consumption activity on individuals or society who are not directly involved in the transaction.

Subsidizing Production

Financial assistance provided by the government or other institutions to reduce the cost of producing goods or services and encourage increased output.

Negative Externalities

A situation where a third party suffers from a decision or action made by others, typically not reflected in the market price.

Positive Externalities

Benefits enjoyed by third-party individuals or the society at large, which result from an economic activity but are not reflected in the market prices.