Quiz on Advertising and R&D

What is one of the benefits of advertising according to the text?

• It provides information to consumers.

• It limits market reach.

• It reduces the quality of products.

• It increases production costs.

How does successful advertising affect costs?

• It always leads to higher prices.

• It increases costs significantly.

• It can reduce costs.

• It has no impact on costs.

What is a potential negative impact of advertising mentioned in the text?

• It decreases consumer spending.

• It can result in economic waste.

• It always leads to innovation.

• It guarantees market expansion.

What is one way firms use R&D according to the text?

• To decrease product variety.

• To eliminate consumer choice.

• To create new designs and tastes.

• To reduce product quality.

What is a consequence of unsuccessful advertising?

• It always increases sales.

• It leads to economic waste.

• It guarantees consumer satisfaction.

• It reduces production costs.

How does advertising benefit publishing companies?

• By reducing their operational costs.

• By providing them with revenue.

• By decreasing their audience.

• By limiting their market reach.

What is a potential effect of advertising on consumer behavior?

• It promotes excessive spending.

• It encourages frugal spending.

• It discourages product innovation.

• It reduces product variety.

What is one of the roles of R&D in product development?

• To increase production costs.

• To eliminate consumer choice.

• To produce new innovations.

• To maintain outdated designs.

What is a benefit of advertising for the labor market?

• It decreases employment opportunities.

• It has no impact on employment.

• It increases employment opportunities.

• It reduces the need for skilled labor.

What is a reason firms might raise product prices according to the text?

• To eliminate market competition.

• To reduce consumer demand.

• To decrease advertising costs.

• To cover advertising expenses.