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Not exactly a classic European performance, but Owen Coyle will doubtless take an undefeated start to the campaign after coming under such non-stop pressure late on. Who would I report to? This loss of VM mobility is a big compromise because one of the biggest benefits of server virtualization is being able to move VMs around.

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One of its purposes is to serve as a brake on the engine of government; to slow things down. One senator from the early 20th century referred to it as a place for sober second thought. One determined senator, or a group like the tea party, for instance, can come in and, in the environment of the Senate, they can assert an awful lot of power in stopping things. So how do you fix that? Officials say the vessel was not authorised to carry arms in Indian waters and that it never produced the necessary paperwork. The New York Times has been blocked since reporting last year that the family of then-Premier Wen Jiabao had amassed a huge fortune.

How long are you planning to stay here? Coleman because I think he has, definitely a future, a bright future. So that is a room that there will be more competition. And Vince Young was available. How long have you lived here?

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Environmentalists welcomed the plan but were skeptical about its effective implementation. About one third of Americans under the age of 30 who have a partner or spouse are in a relationship with someone of a different race, compared to one tenth of Americans over And only one in 10 adults under 30 say no one among their families, friends or coworkers is of a different race, less than half the rate for Americans as a whole. Although implementation of the rules has been greatly delayed by heavy industry opposition, we are finally beginning to see some progress.

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It worked because our action was always not only principled, but cautious. The aim was only to end the war, and improve local lives. Originally from Extremadura, he has been a regular visitor to Andalusia since he was a child, as his family always went there for their summer holidays.

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She says some did save, including two Boston-based hospital systems. A consensus of members would be needed for the proposals to succeed. The defeated earlierversion of the farm bill would have ended benefits for 2 millionpeople, or about 4 percent of recipients. Firefighters were updated by NYPD when they arrived on the scene, he said.

Which political system best matches each economic system? Clarifying What is the goal of utilitarianism? John Stuart Mill was very much a product of home schooling. His father, James Mill, spent a great deal of time educating his nine children, but it was to John, the first born, that he devoted the most attention. By the time John was six, he had been reading Greek for three years and was an accomplished reader of Latin. As the eldest, John was forced to take a large part in the education of his younger siblings. Mill went on to make important contributions to both political philosophy and economics.

His essay On Liberty is considered a classic defense of personal freedom and individuality. His own good, either physical or moral, is not a sufficient warrant. The only freedom which deserves the name, is that of pursuing our own good in our own way, so long as we do not attempt to deprive others of theirs.

Society can subject the distribution of wealth to whatever rules it thinks best. In fact, his research shows that babies as young as six months are able to recognize some corporate logos and mascots. Once the brand light bulb goes on, children quickly learn the art of the nag: In a market economy, producers often spend large amounts to make sure that consumers—even very young children—know the names and logos of their products.

This is because freemarket consumers have freedom of choice, and they will often choose brand names they recognize. Economic Systems and the American Economy 43 Limited Role of Government Under capitalism, government plays a relatively limited role in the allocation of resources. Read on to learn about the relatively limited role of government in a capitalist system. He said that individuals left on their own would work for their own self-interest. Pure capitalism has also been called a laissez-faire system.

Capitalism as practiced in the United States today would be best defined as an economic system in which private individuals own the factors of production but use them within certain legislated limits. Since the s, however, the role of government—federal, state, and local—has increased significantly. The federal government also uses tax revenues to provide social programs such as Social Security and Medicare. State and local governments have expanded their roles in such areas as education, job training, recreation, and care for the elderly. Describing What is meant by a laissez-faire economic system?

Would you ever buy that product again?

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Read on to learn how buyers influence the market. Freedom of Enterprise The American economy, besides being termed capitalist, is also known as a free-enterprise system. This term emphasizes that individuals are free to own and control the factors of production. If you go into business for yourself, you may become rich selling your product. You may instead end up losing money, however, because you—or any entrepreneur—have no guarantee of success. The government places certain legal restrictions on freedom of enterprise.

For instance, just because you know how to fix cars does not mean that you can set up an automobile-repair business in your backyard. Zoning regulations, child-labor laws, hazardous waste disposal rules, and other regulations limit free enterprise to protect you and your neighbors. Freedom of Choice Freedom of choice is the other side of freedom of enterprise. It means that buyers, not sellers, make the decisions about what should be produced.

The success or failure of a good or service in the marketplace depends on individuals freely choosing what they want to buy. If a computer game company releases a new game, but few people buy it, the company most likely will not use that particular game designer again. Economic Systems and the American Economy 45 Although buyers are free to make choices in a free-market economy, the marketplace has become increasingly complex. At times, the government has intervened in various areas of the economy to protect buyers.

Laws set safety standards for such things as toys, electrical appliances, and automobiles. In industries dominated by just a few companies—such as public utilities selling natural gas or electricity—the government sometimes regulates prices. Profit Incentive When a person invests time, know-how, money, and other capital resources in a business, the goal is to make a profit. Profit is the amount left after all the costs of production have been paid, including wages, rents, interest, and taxes.

The desire to make a profit is called the profit incentive, or profit motive. The profit incentive motivates entrepreneurs to produce new goods and services. The risk of failing is also part of the freeenterprise system. What happens when profits are not realized—when businesses fail? Losses signal entrepreneurs that they should move resources elsewhere. Thus, the interaction of both profits and losses leads to an economy that is more efficient, adaptable to change, and continually growing.

Competition In a free-enterprise system, the lure of profits encourages competition—the rivalry among producers of similar products to win more business by offering lower prices or better quality. Effective competition often requires a large number of independent sellers, which means that no single company can noticeably affect the price of a particular product or service. If one company raises its prices, potential customers can simply go to other sellers. Competition leads to an efficient use of resources.

Businesses have to keep prices low enough to attract buyers, yet high enough to make a profit. This forces businesses to keep their costs of production as low as possible. For competition to exist, barriers to entry into, and exit from, industries must be weak. For the most part, the United States has weak barriers to entry and exit, but there are exceptions.

For example, a person cannot become a physician until he or she has received a license from a state government. You as an individual are free to buy whatever you have the funds to do so, whether it is land, a business, an automobile, or baseball cards. You can also control how, when, and by whom your property is used.

What are called the rights of property, however, are actually the rights of humans to risk investment, own productive assets, learn new ways of producing, and then to enjoy the benefits if these choices result in profits. The Founders of the United States recognized that such rights must not be violated, because these rights are the invisible engine for creating wealth and prosperity for all. Thus, in principle, no level of government in the United States can seize or use private property, at least not without paying the owners.

Explaining Who makes the decisions about what should be produced in a free-market system? Identifying Study the list of goods and services below. Then identify who you believe controls most decisions involved with each example, and explain your choice. Goods and Services Who Controls? Electricity Lawn mowing service Ice cream store Critical Thinking 3.

Then think of a grocery store near your neighborhood, and give examples of how the store represents three of the characteristics of a pure market system. Summarizing In a capitalist system, why might business owners resist government intervention in their business? Extending the Content Describe a situation in which a lack of competition caused you to pay more for a good or service than you would have otherwise. Every serious study shows that the U. Over the past 30 years, the share of income going to the highest-earning Americans has risen steadily to levels not seen since before the Great Depression.

Growing inequality helps explain why so many Americans feel so vulnerable even as the overall economy begins to expand. Moods understandably darken when many have to take second jobs and go into debt to improve their living standards. Nations have values, and they set goals for themselves based on those values. The United States is no exception. Its goals are evident in the supreme law of the land—the Constitution—as well as in its government policies and in the actions of people like you.

Then read on to learn about the economic values of the American free-enterprise system. The United States has a free-enterprise, or capitalist, system. Therefore, the major characteristics of a market economy should be evident in its goals. Among the national goals of Americans are freedom, efficiency, equity, security, stability, and growth. The goal of economic freedom is to allow each member of society to make choices. Americans have one of the highest degrees of freedom in the world to start their own businesses, to own private property, to make decisions in the marketplace, and to pursue other economic choices.

Residents of the United States may choose to work nights or part-time, to have several jobs, and to move from place to place in search of work. Along with this freedom come certain costs, as shown in Figure 2. In particular, individuals must normally accept the consequences of their decisions in our free-enterprise system.

Using our limited resources wisely is the goal of economic efficiency. Because of scarcity, if the factors of production are wasted, fewer goods and services overall will be produced. We must always be watchful to use the lowest-cost way to produce any given amount of output. Economic Freedom In the United States almost all people, including teenagers, have the right to open their own businesses and try to become successful entrepreneurs.

Economic Systems and the American Economy 49Economic Systems and the American Economy 49 The issue of fairness underscores the goal of economic equity. Americans want their economic system to be fair and just. Another goal is economic security. Americans want protection against risks beyond our control—accidents on the job, natural disasters, business and bank failures, poverty in old age. Our economic system provides such security through a number of government social programs. The goal of economic stability seeks to reduce extreme ups and downs in the standard of living—the material well-being of an individual, group, or nation.

The standard of living is measured by the average value of goods and services used by the average citizen during a given period of time. The United States has more individuals enjoying a high standard of living than almost anywhere else in the world. Finally, economic growth means producing increasing amounts of goods and services over the long term. As the population increases, the economy must also expand in order to provide for additional needs and wants.

All nations have economic growth as a goal because it helps meet other goals. Evaluating Why is economic growth an important goal of the free-enterprise system? Economic Freedom The trade-off for the freedom to start a business and try to make a profit is the possibility that the business will fail. Economic Security The trade-off for programs that provide economic security, such as unemployment compensation, is the cost of resources that could have been used elsewhere.

Understanding this will help you realize that not all political desires can be turned into economic reality. Did you also experience greater responsibilities as a result? Read on to learn about the rights and responsibilities of Americans in the free-enterprise system. The American free-enterprise system bestows numerous economic rights and protections on individuals like you. You have the right to enter into just about any profession or business you want. A free-enterprise system will not work, however, if individuals do not take on certain responsibilities. The first is to be able to support yourself and your family.

You have a responsibility to use your education in a way that helps you become a productive member of the free-enterprise system. Also, because government has become such an important part of our economy, individuals in our system have the responsibility of electing responsible government officials. This requires both the knowledge of government policies and the ability to analyze the consequences of those policies. Summarizing What are the economic responsibilities of Americans?

Explain the significance of economic efficiency, economic equity, standard of living, economic growth. Identifying Create a diagram like the one below and list the major goals of a market economy. Economy Critical Thinking 3. Contrasting List three examples of ways that economic freedom and economic equity might conflict. For each article, write a short paragraph explaining how the article fits the goal you selected.

Advantages Disadvantages Socialism Capitalism Some government intervention occurs in the American economy, but generally the marketplace answers the three basic economic questions of what, how, and for whom goods and services should be produced. In command controlled economies, however, the government and not the market answers these three basic questions. Read on to learn about the major alternative to market capitalism. He said offering tours of the area surrounding the Chernobyl plant would make people more aware of the impact that man-made disasters could have on life on Earth.

Following the accident, the worst in the history of nuclear engineering, the facility was shut down and residents from within an mile radius were evacuated. The aftermath included radioactive contamination that spread not only across Ukraine then part of the Soviet Union , but also into neighboring Russia and Belarus and even some countries of northern and western Europe.

Do you think that workers in general receive fair treatment under the American capitalist system? Read on to learn about socialism, the major alternative to free-enterprise systems. Pure command socialism is an economic system in which there is little private property and the state owns virtually all the factors of production, such as big factories.

In a socialist economic system, the government attempts to manage production and especially the distribution of goods. Few examples of pure command socialism exist. Perhaps the most extensively controlled economies today are in North Korea and Cuba. The Marxian View of Socialism Socialism as a modern economic system grew out of protests against the problems caused by the Industrial Revolution of the s. Karl Marx viewed history as a continual struggle between various groups, or classes, in society.

In his own day, he saw this struggle as going on between capitalists—owners of the land, machines, and factories—and the proletariat, or workers. Economic Analysis Contrasting How is life different for individual workers under pure socialism compared to under capitalism? Economic Systems and the American Economy 53 Marx believed that capitalists exploited the proletariat, or used them unfairly. According to Marx, the value of goods depends only on how much labor is used in producing them. He believed that when capitalists sold a good and kept the profit, they were taking income that rightly belonged to the proletariat, the people who were actually doing the work.

He outlined the eventual collapse of capitalism and predicted the evolution of socialism into communism—an idealized system with no need for a government. Today communism has come to mean any authoritarian socialist system that supports revolution as a means to overthrow capitalism and bring about socialist goals. The proletariat, whom Marx envisioned owning and controlling the means of production, actually end up with little to no power at all. Socialism Since Marx In the twentieth century, socialism split into two major trends: Democratic socialism is a type of socialist system that works within the constitutional framework of a nation to elect socialists to office.

In democratic socialist nations, government usually controls only some areas of the economy. Its supporters advocate revolution as the means to overthrow capitalism and bring about socialist goals. In authoritarian socialist nations, a central government controls the entire economy. Communism, the term Marx applied to his ideal society, came to mean any authoritarian socialist system. Few countries today have such a system. Comparing and Contrasting How does democratic socialism differ from authoritarian socialism?

How are they similar? The Benefits of Capitalism The main benefits of capitalism are economic efficiency and individual freedom. Read on to learn the values of a capitalist system. Many economists like to compare the advantages and disadvantages of capitalism and socialism. Often such comparisons are based on individual values.

Supporters of Capitalism Those who place a high value on personal freedom, initiative, and individuality prefer capitalism. Supporters of capitalism point out that capitalism allows for more efficiency in the marketplace and for greater rates of economic growth. Indeed, considerable evidence shows that unregulated economic systems—those that are closer to pure capitalism—have much higher rates of economic growth. The United States has a highly planned economy.

The difference between economic planning in the United States and in command economies is who does the planning. All Economies Are Planned It is often said that pure socialism requires centralized planning, and pure capitalism does not. In reality, all economies are planned in one way or another, See Figure 2.

The difference between economic planning here versus that in socialist countries is who does the planning. Private firms, individuals, and elected government officials do the planning in the American economy. In pure socialist systems, central planners make decisions on behalf of everyone. Real-world capitalism has some problems.

Critics note that income is unequally distributed throughout the economy. They also say that although capitalist nations generally have enough government-provided goods such as highways, they do not have enough schools and museums for the general public. Such critics value some of the political goals of socialism. Identifying What are some criticisms of socialism? No System Is Perfect Some critics of capitalism claim that capitalist nations do not provide enough funds for schools and other institutions that benefit the public.

Sequencing Create a diagram like the one below to show the major steps in the development of socialism. Contrasting Write a short paragraph contrasting Marxian and democratic socialism. The BIG Idea Look back at the chart you filled in listing the pros and cons of socialism and capitalism. Then list four reasons why authoritarian socialism seems to be ending while capitalism thrives. Some goods and services you encounter are a result of our capitalist economy; someone made these items for a profit.

Government provides other goods and services. Of the goods and services you used over the past 24 hours, which were made for a profit, and which were provided by the government? In this chapter you learned about economic systems. Although crammed with expensive Western merchandise, Mega has been a hit since it opened its doors in December Yet a surprising number of Russians live as well or better than their Western counterparts.

Identifying What percentage of Russian households now own a computer? Explaining What has enabled Russians to buy more consumer products? Imagine that a new country is being formed and wants to set up an economic system similar to that of the United States. In a mixed economy, the government might some areas of business by making laws to control or influence that part of the economy. All societies make decisions about how to use resources. A market economy experiences changes as market forces influence the factors of production. An entrepreneur is someone who sees a need and takes the by starting a new business.

Competition is usually the , or motivation, for businesses to lower prices. If a business is doing well, it might , or grow larger. Competition is an important of capitalism. Every business must decide how best to its goods or services to consumers. What economic question is being answered if an industry replaces some workers with machines? What are six important characteristics of free enterprise? Why is private property important in the American economic system?

What are the six goals of free enterprise? Complete the graphic organizer by filling in characteristics of each economic system. Who did Karl Marx believe should control the means of production in an economy? Imagine that a school club to which you belong wants to raise money to go on a group trip. Write two or three paragraphs explaining how your club would answer the three basic economic questions as they relate to the fund-raiser. If your school represents an economic system, what type would it be traditional, command, market, mixed?

Within that system, how would the club answer the three basic economic questions? How might concepts like competition and profit incentive influence the outcome of the fund-raiser? The opposite has proved to be true—capitalism has thrived in the world and no society has yet evolved into pure communism. Why do you think this is so? Support your answer with facts and examples. Comparing Create a diagram like the one below to list the advantages and disadvantages of competition to buyers and sellers.

Interpreting Explain what U. What does the line on the graph represent? Why is making a profit more difficult now for ABX Corp. Toward what economic system are other countries apparently moving? Suppose your favorite team makes the playoffs, or the hottest band is coming to play in your town. Should the best seats be available to everyone on a lottery or firstcome, first-served basis? Or should they go to whomever pays the most? The major ticket seller, Ticketmaster, recently adopted a policy of selling the best seats through online auctions.

Others say early auctions allow promoters to assess demand, so remaining tickets may cost more or less. Should tickets go to the highest bidder? Certainly not most loyal, long-time fans or teenagers looking to get as close as possible to their favorite pop idol. Or fans will go to the poor house just to get a glimpse of their favorite artist. Explaining Why does the second writer believe that historically, concert tickets have actually been under-priced? Choosing Sides The two writers disagree on whether the highest bidders should get the best event tickets.

Which writer do you agree with? Analyzing Using the Internet or other sources, check the difference between the prices of the best seats and the cheapest seats at an upcoming event you might like to attend. How do you think the promoters arrived at those prices? Is a better seat worth the difference in price? Big crowds buy more CDs and t-shirts, and maybe they also make the concert experience more enjoyable. So historically, tickets in general were priced too low.

But the economics of the music industry are changing. There is less money to be made in selling CDs [now], so bands are no longer willing to under-price live shows to support record sales. Rather, the concerts themselves have become the cash cow. Consequently, the artists want to squeeze as much money as possible out of them. Combine that with technological advances that make it possible to carry out online [ticket] auctions, and you now have a much more efficient market.

More efficient in the sense that the people willing to pay the most end up in the expensive seats, and those extra revenues go to the artists and the promoters and Ticketmaster , rather than scalpers. Levitt, co-author, Freakonomics YES! The BIG Idea Buyers and sellers voluntarily interact in markets, and market prices are set by the interaction of demand and supply. Why It Matters Think about how you spend your money on things such as transportation, entertainment, food, and clothing. How do you make these economic choices?

In this chapter, read to learn about what it means to be a consumer and make rational consumer choices. Available Income Spending 1. Do you spend a lot of money on small, day-to-day items such as coffee, fast food, and candy, or do you prefer to save up your money for larger purchases? Either way, wise buying decisions will help you get the most out of the products you buy now and will enable you to meet your long-term financial goals. How important is money to you when you consider your career plans? Read on to learn about the factors that affect how much income a person earns.

You and everyone around you are consumers and, as such, play an important role in the economic system. A consumer is any person or group that buys or uses goods and services to satisfy personal needs and wants. Consumers spend on a wide variety of things—food, clothing, housing, automobiles, and movie tickets, for example.

This ability to consume, in turn, depends on available income and how much of it a person chooses to spend now or save. Income can be both disposable and discretionary. Disposable income is the money income a person has left after all taxes have been paid. People spend their disposable income on many kinds of goods and services. First, they buy the necessities: Any leftover income, which can be saved or spent on extras such as luxury items or entertainment, is called discretionary income.

Where a person lives can also influence how much he or she earns—wages in some regions of the country are higher than in other regions. Inheriting money or property also affects earning power. Identifying On what two things does the ability to consume depend? What were your reasons for buying the item? Read on to learn the steps to making good consumer decisions. Spending choices involve several decisions. The initial decision a consumer must make is whether to buy an item in the first place. This may sound so basic as to be unnecessary to mention, but how many times do you actually think about the reasons for the purchase you are about to make?

When deciding how to spend your money, do you concentrate on items you need first, and then consider items you want? Do you consider the trade-offs involved? As we will see, consumer decisions involve three main considerations. Scarce Resources After you have decided to make a purchase, at least two scarce resources are involved—income and time. Before you spend your money, you need to invest time in obtaining information about the product you wish to buy. Suppose, for example, that you wish to buy a mountain bike.

How can you obtain information about the characteristics of the numerous brands and models and the prices of each? You should first visit retail stores and do some research on the Internet to compare prices. The time spent researching online or visiting stores to check models and prices is a cost to you.

This time, and the money you eventually spend on the mountain bike, cannot be used for anything else. Economic Analysis Using Charts How much can you expect to make per year if you graduate from high school but do not attend college? One important factor is education. As you can see, the number of years of education you have has a direct effect on your income. Almost all of the steps in consumer decision making, like the choices represented in the graph, involve an opportunity cost. Remember from Chapter 1 that opportunity cost is the value of the highest alternative choice that you did not make.

When considering this cost, you should think not only about whether you should buy an item in the first place, but also about the quality of the item if you do choose to buy it. In general, a high-quality product costs more than a medium- or low-quality product. Suppose that you want to buy new cross-training shoes and are trying to decide between two different pairs. One model has a pump system that allows you to get a closer fit on your ankle, and the other does not. When considering opportunity costs, you should think carefully about whether the features of the higher-quality product are important to you, or whether you would rather spend the extra money elsewhere.

In our training shoes example, for instance, think about whether a pump system is really something you need or want in a shoe. Is this feature really important to you? Note that both needs, like food, and wants, like entertainment, are included in consumer spending. Economists define rational choice as the alternative that has the greatest perceived value. Rational choice involves choosing the best-quality item that is the least expensive from among comparablequality products.

As a consumer, you will make rational choices when you purchase the goods and services you believe can best satisfy your wants. Do not get the impression that wise consumers will all make the same choices. A rational choice is one that generates the greatest perceived value for any given expenditure. Rational choices that are based on careful consumer decision making will still lead to billions of different consumer choices yearly.

Explaining What does it mean to make a rational consumer choice? Buying Decisions If you choose the higher-priced product, you must believe that the opportunity cost for the higher quality is worth it—that nothing else at that instant will give you as much value. Your Role as a Consumer 69 Vocabulary 1. Identifying Copy the diagrams below, and in them list four items you would like to purchase now Spending and four items you would like to save for and buy later Saving.

Spending Saving Critical Thinking 3. The BIG Idea From your spending web in question 2, list the items you are willing to give up in order to buy items in your savings web, and explain why. Explaining What kinds of products are purchased with disposable income?

Rational Choice Choose a product you like and create two advertisements. The first ad should emphasize why buying this product is a rational choice. Three Basic Buying Principles 1. Using advertising wisely A. Online ads, on the other hand, have largely been ignored. Top agencies often outsource them to specialists or give them to separate inhouse staffs. The goal of advertisements is to win your consumer dollars, and advertisers are willing to spend millions of dollars to attract your attention to their products.

Because of the problems of scarce income and time, however, your goal should be to obtain the most satisfaction from your limited income and time. Read on to learn about why it is important to gather information before buying a product. Suppose again that you want to buy a mountain bike. How should you go about selecting one? First, you have to obtain information about mountain bikes.

You could also conduct online research. Actually, as a wise consumer, you would do all of these things before making your purchase. Information is costly because obtaining it involves your time. How much time should you spend? The buying principle to follow is: Obtain only as much information as is worthwhile. What, however, does worthwhile mean? The value of your time and effort spent gathering information should not be greater than the value you receive from making the best choice of product for yourself. Developing a Consumer Knowledge Base As you shop for different products, you will begin to develop a consumer knowledge base.

Information you obtain looking for a mountain bike might help you someday to make decisions about choosing a car or a laptop. Simply getting salespeople to give you accurate information is a skill that you can acquire and sharpen over time. One relatively easy way to obtain much information in a short amount of time is to use a standard search engine on the Internet. You might also want to read reviews other people have written about different brands and models of the product you wish to buy. Also, visit numerous sites that offer the product for sale and compare prices, warranties, and other information.

Analyzing Why is it important to develop a consumer knowledge base? Help for Consumers Many publications, in print and on the Internet, can help you learn about a product before you buy it. One good print publication is the magazine Consumer Reports, which tests and rates a wide variety of products. Careers Handbook See pages R76—R80 to learn about becoming a buyer. Using Advertising Wisely Consumers should carefully consider the claims of advertisers. Read on to learn about how to use advertising wisely. Advertising is all around you—on television, the Internet, billboards, and so on.

In general, advertising can be classified as competitive or informative. Advertising that attempts to persuade consumers that a product is different from and better than any other is competitive advertising. Companies use it to take customers away from competitors or to keep customers they already have.