With Regard to the Objectives of Advertising,identify the Most Accurate

question 37

Multiple Choice

With regard to the objectives of advertising,identify the most accurate statement.

• A)Advertising is not justified on the basis of the revenue it generates.
• B)The advertising outlays should be increased in every market and medium up to the point where the additional cost of gaining more business exceeds the incremental profits.
• C)The ultimate goal of the business advertiser is to make sales and profits.
• D)Advertising is not subject to the law of diminishing returns.

---

Definitions:

Monetary Policy

The process by which a government, central bank, or monetary authority manages the money supply to achieve specific goals, such as controlling inflation, maintaining employment, and stabilizing the currency.

Short-Run Phillips Curve

A curve that illustrates a short-term trade-off between inflation and unemployment, suggesting lower unemployment can come at the cost of higher inflation.

Financial Crisis

A broad term for a situation when financial assets rapidly lose a significant part of their nominal value.

Contractionary Monetary Policy

A central banking strategy involving the increase of interest rates or reduction of the money supply to decrease inflation and slow down economic growth.