As Green Claims Increased in Number and Scope, the FTC

question 52

Multiple Choice

As green claims increased in number and scope, the FTC developed the _____ to help alleviate concern over the potential for marketers to mislead consumers.

• A) Biodegradable Act of 2005
• B) Marketing Required Guidelines
• C) Green Guides
• D) A and B
• E) All of the above were developed by the FTC.

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Definitions:

Quantity Theory of Money

A theory suggesting that the general price levels of goods and services are directly proportional to the money supply in an economy.

Equation of Exchange

An economic equation that represents the relationship between money supply, its velocity, price level, and the volume of transactions in an economy.

Velocity of Circulation

A measure of the rate at which money is exchanged in an economy, typically calculated as the ratio of nominal GDP to the money supply.

Supply-side Economics

Supply-side Economics is a macroeconomic theory that argues economic growth can be most effectively fostered by lowering taxes and decreasing regulation to increase production.