Which of the Following Statements Does NOT Describe an Economic

question 39

Multiple Choice

Which of the following statements does NOT describe an economic defense for advertising?

• A)Advertising leads to an increased standard of living.
• B)Advertising stimulates new product development.
• C)Advertising provides useful information for buying decisions.
• D)Advertising adds to the cost of products.
• E)Advertising leads to economies of scale in production.

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Definitions:

Special Agent

An agent that is employed to conduct a single transaction or a small, simple group of transactions.

Authority

In agency law, an agent’s ability to affect his principal’s legal relations with third parties. Also used to refer to an actor’s legal power or ability to do something. In addition, sometimes used to refer to a statute, case, or other legal source that justifies a particular result.

Agency Relationship

A legal relationship in which one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.

Gratuitous Agent

An individual who acts on behalf of another without receiving any compensation or benefit for their services.