________ provide an incentive for invention and innovation.
A. Network effects
B. Patents
C. Economies of scale
D. Natural monopolies
Answer: B
You might also like to view...
A time-series graph showing total production in Japan from 1960 to 2010 shows a positive trend. It is the case that total production
A) fell every year between 1960 and 2010. B) rose every year between 1960 and 2010. C) was lower in 2010 than in 1960. D) was higher in 2010 than in 1960.
The money supply is vertical because
A) prices are indeterminate. B) prices have no real impact. C) the money supply is set by policy. D) prices are counter-cyclical.
The price of a new textbook is $120 in one year and is $150 two years later, while the price of a used copy of the text increased from $40 to $60. The relative price of a new textbook
A) increased from 3 to 4.5. B) decreased from 0.8 to 0.67. C) decreased from 3 to 2.5. D) remained constant.
An example of moral hazard is
a. A taxi driver paid per mile taking a longer route than necessary b. a piece-rate garment worker shirking more than a per jour worker c. an hourly salesman working harder than a commission salesman d. an author on contract going to as many book signings as one with a percentage royalty rate