What aspects of bargaining can affect market outcomes?
The outcomes of bargaining are generally indeterminate and hard to link to characteristics of the buyer or the seller. There are important elements of randomness, but some studies show that access to market-related information can affect outcomes.
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Why do property rights increase research and development (R & D) for many companies?
A. Property rights do not increase research and development. B. Property rights reduce the risk of others stealing your work. C. Property rights incentivize buyers to purchase the company's products. D. Property rights always increase profits, so companies have more money to spend on R & D.
Refer to Figure 19-2. Which of the following would cause the change depicted in the figure above?
A) A new trade agreement with China results in the United States removing all tariffs on clothing imported from China. B) The Chinese increase their preferences for goods produced in the United States. C) Lack of investment in infrastructure causes U.S. productivity to fall relative to Chinese productivity. D) Tainted cat food from China causes U.S. consumers to decrease their preferences for Chinese goods relative to U.S. goods.
According to new growth theory
A) physical capital is nonexcludable. B) knowledge capital is subject to increasing returns. C) knowledge capital is rival and excludable. D) knowledge capital is excludable.
In a market system, the primary instruments used to coordinate economic activity are
a. plans. b. prices. c. input-output analyses. d. quantities.