Which of the Following Is NOT an Example of Deceptive

question 276

Multiple Choice

Which of the following is NOT an example of deceptive advertising targeted by the FTC:

• A) describing pastries made in America as Danish pastries
• B) claiming that "Hooked on Phonics" can teach people with learning disabilities to read
• C) claiming that Frosted Mini-Wheats improve children's attentiveness
• D) claiming that Rice Krispies increase immunity to disease
• E) all of the other specific choices are correct

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Definitions:

Inferior Goods

Goods for which demand decreases as consumer income rises, opposite to normal goods.

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls.

Complements

Goods or services that are often used together, where an increase in demand for one leads to an increase in demand for the other.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with high elasticity indicating a strong response and low elasticity indicating a weak response.