A firm that develops a new technology is the beneficiary of a ________ scarcity, while a firm that controls a patent is the beneficiary of a _________ scarcity.
Fill in the blank(s) with the appropriate word(s).
natural; contrived
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During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because
A) with higher incomes and more older Americans, we have moved rightward along our demand curve for drugs. B) with higher incomes and more older Americans, the demand curve for prescription drugs has shifted rightward. C) more new firms entered the pharmaceutical industry each year, which caused a rightward shift in the supply curve of prescription drugs. D) Both answers A and C are correct.
Private capital flows in the form of both direct and portfolio investment began to return to Latin America after 1989, effectively marking the end of the Lost Decade
Indicate whether the statement is true or false
Refer to the diagrams. Assuming a constant price level, an increase in aggregate expenditures from AE 1 to AE 2 would:
A. move the economy from A to C along AD 1 .
B. move the economy from C to A along AD 1 .
C. increase aggregate demand from AD 1 to AD 2 .
D. decrease aggregate demand from AD 2 to AD 1 .
Which of the following represents the law of supply?
A) An increase in the price of a good causes an increase in the supply of that good. B) An increase in the price of a good causes a rightward shift of the supply curve for that good. C) An increase in the price of a good causes an increase in the quantity supplied of that good. D) all of the above