Which of the following statements is incorrect?
a. Advertising can lower the costs to consumers of acquiring information
b. Advertising tends to increase competition in imperfectly competitive industries.
c. Even though advertising increases total production costs, it may indeed provide a useful service to consumers.
d. Advertising is only useful as a way to manipulate consumer tastes.
d
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According to the short-run Phillips Curve, there is a trade-off between
(a) interest rates and inflation (b) the growth of the money supply and interest rates (c) unemployment and economic growth (d) inflation and unemployment (e) economic growth and interest rates
In his book The Wealth of Nations, Adam Smith employed the example of a pin factory in order to explain what economic concept?
A) the relationship between the marginal and average product of labor B) the law of diminishing returns C) why no firm would want to hire so many workers as to experience a negative marginal product of labor D) the division of labor