Which argument is not typically advanced by economists favoring advertising ?
Show answer Hide answer
Answer: C. Advertising provides a creative outlet for artists and writers
Explanation
Providing a creative outlet for artists is an incidental byproduct rather than an economic argument. Economists evaluate advertising based on its direct impacts on market efficiency and competition. Artistic expression does not explain the primary economic benefits cited by market analysts. Pro-advertising economists emphasize information dissemination and lower consumer search costs. Advertising helps new entrants challenge established firms by informing consumers about alternatives. Commercial messages stimulate overall demand and encourage product quality improvements.
Businesses allocate large advertising budgets to capture consumer attention in crowded markets. Consumers use advertisements to compare prices and discover innovative new product offerings. Regulatory bodies monitor advertising content to prevent deceptive practices and protect buyers. Advertising increases competition by helping new brands attract customers from established firms. Advertising provides valuable information to customers about prices and new product locations. Advertising provides new firms with the vital means to attract customers from existing giants.
Related questions
Q1. Which condition is not strictly necessary for economic development ?
Show answer Hide answer
Answer: A. a temperate climate
Economic development has occurred successfully across various geographic zones globally. A temperate climate is not a strictly necessary condition for achieving modern growth. Countries with tropical climates have achiev...
Q2. Why do firms distribute bonuses during highly profitable periods to keep workers content ?
Show answer Hide answer
Answer: D. People care about fairness
Behavioral economics demonstrates that individuals evaluate economic outcomes relative to perceived norms of fairness and reciprocity. When companies experience high profitability, workers expect to share in those gains...
Q3. Which option is excluded from Cash Crops ?
Show answer Hide answer
Answer: B. Wheat
Wheat is a staple food grain rather than a commercial cash crop. Cash crops are grown primarily for commercial profit in domestic and international markets. Staple grains feed populations directly while cash crops genera...
Q4. Which instrument is not a tool of monetary policy ?
Show answer Hide answer
Answer: A. Taxation
Taxation is a tool of fiscal policy managed directly by the government. Monetary policy tools are controlled exclusively by a nation central banking institution. Fiscal policy involves government spending and taxation to...
Q5. Which option is not an example of a global public good ?
Show answer Hide answer
Answer: B. Polio and small-pox vaccinations.
Vaccinations for polio and smallpox confer widespread public health benefits that protect entire populations through community immunity. Global public goods are characterized by non-rivalry and non-excludability on a wor...
Q6. Which policy is not classified as a supply-side measure ?
Show answer Hide answer
Answer: C. Helping individuals to move location to find work
Helping individuals relocate for work is a labor market mobility policy measure. Traditional supply-side measures focus heavily on education, tax incentives, and deregulation. Relocation assistance addresses geographic f...