Question

QUESTION 25

1. Critics of advertising make which of the following claims about advertising?
   i.          It often creates "needs" for trivial products.
   ii.         It manipulates people's tastes.
   iii.        It uses scarce resources and raises costs.

   		(i) and (ii) only
   		(i) only
   		(ii) only
   		(i), (ii), and (iii).

Answer 1

Answer: (i), (ii), and (iii).

The critics of advertising make all the following claims;

• It often creates "needs" for trivial products,
• It manipulates people's tastes,
• It uses scarce resources and raises costs.

The advertising manipulates people's tastes and prefences, which often creates "needs" for trivial products. People waste their money to fulfil this need, which often doesn't actually fulfil the satisfaction promised in the advertisement of the product. The psychological manipulation of advertising increases people's demand for a good. The advertising also uses the scarce resources which increase the variable and marginal cost of production and thus raise the price of the product.

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