Advertising can enhance economic efficiency when it:

A. increases brand loyalty.
B. raises entry barriers.
C. increases consumer awareness of substitute products.
D. boosts average total cost.

Answer: C

Economics

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Refer to Table 19-23. Suppose that a very simple economy produces three goods: pizzas, haircuts, and backpacks. Suppose the quantities produced and their corresponding prices for 2011 and 2016 are shown in the table above

Use the information to compute real GDP in the year 2011 and 2016. Assume that 2011 is the base year. Is output higher in 2016 or 2011? Why?

Economics

Refer to Figure 27-11. In the graph above, the shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion

A) may be greater than or less than B) would be less than C) would be greater than D) would be equal to

Economics