Patents and copyrights
a. are illegal in the United States
b. reduce barriers to entry in markets
c. protect small firms from large firms
d. lead to increased output and decreased prices
e. provide incentives for firms to engage in research and development
E
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President Obama's stimulus package in 2009 included
A) new tax cuts but no change in government spending. B) tax increases and decreases in government spending. C) increases in government spending but no change in taxes. D) new tax cuts and increases in government spending.
Suppose an economist uses an econometric model to estimate the demand for peanut butter in the United States. This modeling is an example of
a. economic policy making b. normative economics c. positive economics d. macroeconomic analysis e. descriptive economic analysis
Suppose the U.S. government banned the sale and production of cigarettes. Which of the following would be most likely to occur?
a. No one would smoke anymore. b. The amount of violence involved in the buying and selling of cigarettes would increase. c. The price of cigarettes would decrease. d. The supply for cigarettes would become elastic.
Normal profit
A. Is the accounting profit earned when economic profits are greater than zero. B. Covers the full opportunity cost of the resources used by the firm. C. Is an above-average rate of return. D. Is sufficient to induce entry into the industry.