The price elasticity of demand is generally negative to reflect the indirect relationship between the quantity demanded of a good and its price.
Answer the following statement true (T) or false (F)
True
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Producing a differentiated product occurs in which of the following industries?
A) oligopoly, monopolistic competition, and perfect competition B) monopolistic competition and oligopoly C) monopolistic competition only D) oligopoly only
Intellectual property rights provided by patent systems typically ________
A) provide tax incentives to encourage research and development B) allow for the depreciation of capital C) compensate the government for building infrastructure D) last about twenty years
Imports are leakages from the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false
By raising the legal reserve requirement, the Federal Reserve System
a. forces banks to hold funds from repaid loans as required reserves instead of lending the funds again b. creates many new lending opportunities for cash-strapped financial intermediaries c. actually creates new money because it allows more borrowers to come into banks to demand loans d. seeks to increase the potential money multiplier e. encourages member banks to loan more than what is legally feasible