Advertising is an economically productive activity and NOT a waste of resources because:
A) advertisements increase profits.
B) advertisements can convey information about the product.
C) if consumers don't have good information about a product, ads can serve as indirect signals about the provider.
D) advertisements can convey information about the product, and if consumers don't have good information about a product, ads can serve as indirect signals about the provider.

Question

Quizplus · Accepted Answer

Advertisements are economically productive because they provide information about the product and serve as indirect signals about the provider when consumers lack good information.

Advertising Is an Economically Productive Activity and NOT a Waste