Pedro buys market basket A that includes 10 books at a price of $20 per book and 10 DVDs at a price of $10 per DVD. Market basket B contains 12 books and 12 DVDs. Based on this information, which of

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• Bosses now prefer to be paid in share options. The average chief executive of one of America's top 200 firms would take home just over $750,000 in gold. In fact, in 1998 he made a pre-tax profit of $8.3 m by exercising executive share options, which give the right to buy a fixed number of his company's shares at a fixed price in what is now a rising market. At the end of last year, he also had total unrealized profits on stock options of nearly $50m.

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• Advertising can be thought of “as the means of making known in order to buy or sell goods or services”.Advertising aims to increase people’s awareness and arouse interest.It tries to inform. and to persuade.The media are all used to spread the message, and the press offers a fairly cheap method.Magazines are used to reach special sections of the market.The cinema and commercial radio are useful for local markets.Television, although more expensive, can be very effective.Posters are fairly cheap and more permanent in their power of attraction.Other ways of increasing consumer interest are through exhibitions and trade fairs as well as direct mail advertising.

  We might ask whether the cost of advertising is paid for by the manufacturer or by the consumer.Since advertising forms part of the cost of production, which has to be covered by the selling price, it is clear that it is the customer who pays for advertising.However, if large scale advertising leads to increased demand, production costs are reduced, and the customer pays less. It is difficult to measure exactly the influence of advertising on sales.When the market is growing, advertising helps to increase demand.When the market is shrinking, advertising may prevent a bigger fall in scales than would occur without its support.What is clear is that businesses would not pay large sums for advertising if they were not convinced of its value to them. (1).Advertising is often used to (). A.convince customers B.promote production C.rise interest D.push the sales (2).According to the passage, trade fairs (Paragraph 1) may () . A.replace exhibitions and markets supply B.local goods and services C.attract possible customers D.provide cheap amusements (3).Advertising is in the main paid for by () . A.the customer B.the producer C.the increased sales D.the decreased costs (4).The author says that advertising can increase demand (). A.in any period of sales B.in any circumstances C.in a growing market D.in a shrinking market (5).What the last sentence of this passage actually tells us is that (). A.businessmen usually do not pay more for advertising than they have to B.businessmen know well that advertising could bring them more profits C.advertising couldn’t convince people of the value of the goods advertising usually costs D.businessmen large amounts of money

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