Advertising
A) makes the market more efficient.
B) maximizes consumer well-being (thanks to the invisible hand).
C) can't be restricted without violating the moral rights of advertisers.
D) subsidizes the media.

Question

Quizplus · Accepted Answer

Advertising subsidizes the media by providing a source of revenue for media outlets. This allows them to provide content at a lower cost or even for free to consumers. However, the other options are not entirely accurate. While advertising can increase market efficiency, it can also create inefficiencies by promoting monopolies or creating information asymmetry. Maximizing consumer well-being is not necessarily the goal of advertising, as its primary purpose is to promote the sale of products or services. Additionally, while advertising has some moral protections, it can also be restricted for reasons such as promoting harmful products or making false claims.