Some economists think that advertising is a waste of resources because:
A)rational consumers end up spending too little on brand names.
B)consumers may buy things they do not need.
C)advertising creates excess capacity.
D)advertising leads to lower costs for goods and services.

Question

Quizplus · Accepted Answer

Some economists argue that advertising can manipulate consumer preferences and create artificial demand for goods and services that people do not actually need. This can result in resources being wasted on producing and promoting products that have little real value or benefit to society.

Some Economists Think That Advertising Is a Waste of Resources