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The Reason the Federal Trade Commission Regulates Advertising to Prevent

Question 140

Multiple Choice

The reason the Federal Trade Commission regulates advertising to prevent false and misleading claims is:


A) that firms that make false and misleading claims would earn lower profit, resulting in many firms being forced to shut down and many workers losing their jobs.
B) to create a market for information.
C) to prevent a market failure caused by inaccurate information.
D) to eliminate persuasive advertising.

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