Question

Which of the following is a reason advertising can be economically wasteful? Advertising provides consumers with price and quality information about products. Advertising manipulates people's tastes and can reduce competition. The most effective advertising is very expensive and, therefore, wasteful.

Answer 1

Answer:

The most effective advertising is very expensive and, therefore, wasteful.

Explanation:

In order for something to be considered economically wasteful it must use and dispose money carelessly.

Therefore options:

• Advertising provides consumers with price and quality information about products.
• Advertising manipulates people's tastes and can reduce competition.

Do not apply since the options do not consider the costs of advertisement.

The only option that considers the cost of advertisement is: The most effective advertising is very expensive and, therefore, wasteful. It refers to the high costs of effective advertisement, and it implies that the money is not used carefully.