What is the economic role of a patent?
What will be an ideal response?
A patent grants the inventor the exclusive right to make, use, or sell an invention for 20 years. This gives the inventor property rights on the invention, which enables the inventor to profit from the invention. The number of inventions should be greater if people can profit from inventive activity, so patents help stimulate investment in new technology and economic growth.
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If the percentage change in the quantity supplied of a good is less than the percentage change in price of the good, the good is said to have a(n):
A) inelastic supply. B) unit elastic supply. C) elastic supply. D) perfectly elastic supply.
Refer to the above figures. Which of the panels would be consistent with the situation in which external costs exist?
A) Panel 1 B) Panel 2 C) Panels 1 and 2 D) neither panel
Between 1860 and 1910, value added by the top ten manufactures roughly
a. doubled. b. tripled. c. increased by 500% (a factor of five). d. increased by 1000% (a factor of ten).
The law of diminishing marginal utility means that: a. marginal utility is maximized when consumers get the same amount of total utility from every good they consume. b. total utility is maximized when consumers get the same amount of marginal utility from the last unit of every good they consume. c. beyond some point, added units of a product provide lower and lower amounts of marginal
utility. d. a consumer would get less utility from the last unit of a good consumed when that good costs $3 than when it costs $1.