Patents are a form of monopoly that society allows because they _____.
(A) Set up a situation in which only a few manufacturers can control an industry.
(B) Give companies the right to decide who will be allowed to use their products.
(C) Encourage firms to research and develop new products that benefit society as a whole.
(D) Maintain an orderly way for companies to make a lot of money.
Ans: (C) Encourage firms to research and develop new products that benefit society as a whole.
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Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. The base year is 2012. Nominal GDP in 2013 is equal to
A) $500. B) $800. C) $640. D) $625. E) $200.
The relationship between the government deficit and the change in the monetary base is
A) deficit equals change in government debt held by the public minus change in monetary base. B) deficit equals change in government debt held by the public plus change in monetary base. C) deficit equals change in government debt outstanding plus change in monetary base. D) deficit equals change in government debt outstanding minus change in monetary base.
Investment is a flow of resources into the production of new capital.
Answer the following statement true (T) or false (F)
City Bank has $5 million in deposits, $600,000 in cash on hand, and no funds on reserve with the Fed. With a required reserve ratio of 10 percent, City Bank has ______ available to lend to borrowers.
a. $600,000 b. $100,000 c. $500,000 d. $4,500,000