Most governments enforce patents, copyrights, and trademarks. While these are clear restrictions on free trade, it is believed that inventors and investors:
A. favor these restrictions since they promote inventive activities.
B. prefer low prices to patents.
C. prefer high tax rates to patents.
D. generally oppose these restrictions as they encourage monopolistic competition.
Answer: A
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When a household takes extra (unbudgeted) money on a trip, economists would classify this money as held for a(n):
a. speculative demand. b. transactions demand. c. emergency motive. d. precautionary demand. e. inflationary motive.
Most of the public debt is owed to citizens and domestic institutions. This is one reason that the public debt:
A. has a procyclical economic effect on the economy. B. can result in the bankruptcy of the federal government. C. crowds out private investment. D. does not impose a burden on future generations.
Which of the following conditions is true when a producer minimizes the cost of producing a given level of output?
A. The MRTS is equal to the ratio of input prices, and the marginal product per dollar spent on all inputs is equal. B. The marginal products of all inputs are equal. C. The MRTS is equal to the ratio of input prices. D. The marginal product per dollar spent on all inputs is equal.
If the U.S. government's borrowing needs increase, in the bond market this would be seen as:
A. the bond demand curve shifting right. B. the bond supply curve shifting right. C. a movement up the bond supply curve. D. the bond demand curve shifting left.