Economists Defend Brand Names as Useful to Consumers Because Brand

question 523

Multiple Choice

Economists defend brand names as useful to consumers because brand names

• A)provide consumers with information about quality when quality cannot easily be judged in advance of purchase.
• B)give firms a financial incentive to maintain the high quality associated with their brand name.
• C)convince consumers to spend more for products nearly identical to generic versions.
• D)Both a and b are correct.

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Definitions:

Kohlberg's Postconventional

The third level in Kohlberg's theory of moral development, where individuals make ethical decisions based on universal principles of justice and rights.

Retirement

The period in life where an individual stops working full-time, often due to age, allowing for more personal time and less income.

Family and Friends

Social support networks consisting of relatives and acquaintances, often providing emotional and material support.

Metabolism

The complex set of life-sustaining chemical reactions in the body's cells that process nutrients and convert them into energy.