Relating to the Economics in Practice on Page 361: Which

question 37

Multiple Choice

Relating to the Economics in Practice on page 361: Which of the following is an example of an advertisement in which the fact that something is NOT mentioned indicates that the product is unlikely to be desirable?

• A) an advertisement for hot dogs that mentions that it meets certain religious dietary requirements but fails to explain those requirements in a way that would be understood by most people
• B) an advertisement for a sneaker that mentions the endorsement of one sports star but fails to mention the sports stars that have endorsed competing products
• C) an advertisement for a 30-year old lawn tractor that mentions the color of its paint and the number of cup holders it has but makes no mention of the condition of its engine
• D) an advertisement for ice cream that describes the variety of flavors available and the way it tastes but makes no mention of the ice cream's nutritional content

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Definitions:

Municipal Bonds

Bonds issued by state and local governments.

Revenue Bonds

Bonds issued by governments or municipalities that are intended to be repaid with revenue from a specific project or source, such as a toll road or public utility.

General Obligation Bonds

Long-term loans issued by municipalities that are backed by the general tax revenue of the municipality rather than revenue from a specific project.

Indirect Transfer

The movement of goods or services through an intermediary before reaching the final consumer, rather than a direct transaction from producer to consumer.