Question

Which of the following is not an argument put forth by economists in support of the use of advertising?

a. advertising provides information to customers about prices, new products, and location of retail outlets
b. advertising provides a creative outlet for artists and writers
c. advertising increases production
d. advertising provides new firms with the means to attract customers from existing firms

Answer 1

Advertising provides information, increases production, and helps new firms attract customers.

Step-by-step explanation:

Of the options listed, b. advertising provides a creative outlet for artists and writers is not an argument put forth by economists in support of the use of advertising. Economists argue that advertising provides information to customers about prices, new products, and location of retail outlets, increases production, and provides new firms with the means to attract customers from existing firms. While advertising may offer opportunities for creative expression, this is not one of the main arguments put forth by economists.