An Important Defence of Advertising Is That It Is Not

question 158

Multiple Choice

An important defence of advertising is that it is not rational for profit-maximising firms to spend money on advertising for products that:

• A)are superior quality
• B)have low prices
• C)have high prices
• D)are inferior quality

Understand the liability of employers for employees' actions in the course of employment and the limits of such liability.

Understand how changes in exchange rates affect the prices of goods in different countries.

Grasp the concepts of absolute and comparative advantage in international trade.

Recognize the effects of trade policies and subsidies on prices and trade volumes.