Some economists think that advertising is a waste of resources because:
A)rational consumers end up spending too little on brand names.
B)consumers might be irrational and 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

Economists who think advertising is a waste of resources argue that consumers might be irrational and buy things they do not need, leading to a misallocation of resources.

Some Economists Think That Advertising Is a Waste of Resources