Assume the role of a critic of advertising. Describe the characteristics of advertising that reduce the effectiveness of markets and decrease the social welfare of society
Advertising manipulates people's tastes and is psychological rather than informational. As a result, advertising creates a desire for a product that might not otherwise exist. Advertising may also impede competition by convincing consumers that products that are identical have significant differences.
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Suppose the exchange rate changes so that more Japanese yen are required to buy a dollar. We could conclude that:
a. the Japanese yen has appreciated in value. b. U.S. citizens will buy more Japanese imports. c. Japanese will demand more U.S. exports. d. U.S. citizens will buy less Japanese imports.
Both Eastman Kodak and International Harvester were found guilty of antitrust violations under the Sherman Act.
Answer the following statement true (T) or false (F)