Realization of gains from trade, entrepreneurial discovery, and investment are largely dependent on
a. competitive elections and political democracy.
b. the presence of institutions and policies consistent with economic freedom.
c. the use of tariffs and quotas to protect domestic businesses from competition with foreigners.
d. the use of government planning to direct investments into worthwhile projects.
B
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In most cases, optimization in differences is faster and easier than optimization in levels because:
A) the former involves fewer steps to arrive at a conclusion. B) the former only focuses on the key differences between options and ignores things in common. C) the former focuses only on the benefits of an option, ignoring all calculations involving costs. D) the former uses simpler arithmetic tools in comparison to the latter.
An electronic payments system has not completely replaced the paper payments system because of all of the following reasons EXCEPT
A) expensive equipment is necessary to set up the system. B) security concerns. C) privacy concerns. D) transportation costs.
Figure 11-6
At its optimal output level, the profit-maximizing monopolist in Figure 11-6 will earn a profit equal to
A. zero. B. (P2? P3)Q. C. P > Q. D. (P5? P6 )Q.
Foreign residents can benefit from U.S. research and development activity because
A) they ignore U.S. patent laws and steal the technology. B) they can import the goods, obtaining inputs at lower cost than they would otherwise. C) countries usually share patented ideas. D) patents do a poor job of protecting the inventor.