Which of the following is not a reason why government agencies subsidize basic research?
a. The private market devotes too few resources to basic research.
b. The general knowledge developed through basic research can be used without charge.
c. The social benefit of additional knowledge is perceived to be greater than the cost of the subsidies.
d. The government wants to attract the brightest researchers away from private research firms.
d
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The market price for a final good reflects
A) the objective value of the good. B) the values added by earlier stages of production. C) the seller's profit. D) the buyer's loss. E) both C and D.
When interest rates are low, people often ______.
a. put a bit aside every payday to invest in U.S. Treasury bills b. invest in long-term savings instruments c. hang on to their money to make sure they have enough for everyday expenses d. put more money into their CDs
Which of the following is a property of a public good?
A. It is established by legislation. B. Free riders are excluded. C. Users collectively consume benefits. D. It is determined by positive economics.
Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost:
A. firm 2 will lose market share. B. firm 1 will reduce its output. C. firm 2 will enjoy lower profits. D. None of the statements is correct.