Exam 6: Consumers

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What would the world be without advertising? Would companies be able to maintain sales or would they go under because of lack of business without advertising? What role would "word of mouth" have if there were no advertising?

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If we accept the principle of "caveat emptor" - "let the buyer beware," why then is there concern about the ethics of advertising. If the consumer is responsible to make the decision, is there anything to justify restricting the advertiser? Explain your view.

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According to Galbraith's "dependence effect",

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Give an example of manipulative pricing.

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Business is right to insist that accidents occur exclusively as a result of product misuse and that it is thereby absolved of all responsibility.

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