What is a positive effect of advertising?
A) It reduces economic efficiency in the economy.
B) It promotes economic concentration in industry.
C) It is designed to persuade rather than inform consumers.
D) It provides information that reduces search costs.

Question

Quizplus · Accepted Answer

Advertising provides consumers with information about products and services available in the market, which reduces the time and effort required to search for them. This, in turn, lowers the search costs for consumers and increases economic efficiency by promoting competition among firms.

What Is a Positive Effect of Advertising