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As discussed in the textbook, p. 293-4 on Galbraith's "dependence effect", there is some debate among philosophers as to whether advertising creates wants as Gailbraith argued in his book, The Affluent Society. According to him, as a society becomes more affluent, wants are increasingly created by the process by which they are satisfied. Others disagree though, claiming that advertising merely appeals to underlying desires already present. This issue is laiden with meta-ethical significance of course because if ads can and do create new desires, then advertisers may have a moral responsibility to avoid using behavioral or psychological means to create desires that might not in fact be good for consumers and society. On the other hand, if they cannot actually create new desires, then some will argue that this places less of an ethical burden on them since they are only appealing to desires people already have, and it's not up to them as advertisers to decide which ones are better or worse. Rather, it is up to them to appeal to whatever it may be that consumers already do want.
What do you think about this debate? Can you come up with some example(s) in your life or someone else's where advertising of one form or another created a new desire that clearly wasn't there before? And if so, can you say if it was generally for the better or worse?
Terps Builders is currently using the Dual Rate method for overhead allocation. As the project manager of University View, how much overhead should you charge on the total project cost?
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Elly's hot dog emporium is famous for its chilidogs. Elly's latest sales indicate that 25% of the customers ordering her chilidogs order it with hot peppers. Suppose 17 customers are selected at random. What is the probability that fifteen or more cu..
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The cost of the project is $1,200,000, which will be an immediate expense. The project is expected to produce cash flows in year 3 (end of Year) of $400,000 and this cash flow will grow at 15% for the following 5 years. At the end of the 6th year a c..
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