Advertisements That Appear to Convey No Information at All

question 102

Multiple Choice

Advertisements that appear to convey no information at all

• A)are usually associated with "infomercials."
• B)are mostly useless to consumers, but valuable to firms.
• C)are mostly useless to firms, but valuable to consumers for their entertainment quality alone.
• D)may convey information to consumers by providing them with a signal that firms are willing to spend significant amounts of money to advertise.

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Definitions:

Aggregate Supply

The cumulative supply of products and services planned for sale by firms in an economy within a specific time period.

Cyclical Unemployment

Unemployment caused by a downturn in the economic cycle, such as a recession, which reduces the demand for goods and services.

Structural Unemployment

Unemployment caused by a mismatch between workers' skills and the requirements of available jobs, often due to technological or economic changes.

Frictional Unemployment

The short-term unemployment that arises from the process of matching workers with jobs, often due to workers changing jobs or entering the workforce.