Suppose that a drug for treating cancer is cleared by the Food and Drug Administration and that the company is successful in obtaining a patent for its product. Which of the following is then TRUE?
A) The patent holder now faces barriers to entry.
B) The method of producing the product would not be considered intellectual property.
C) The patent holder has a monopoly.
D) The drug would have many close substitutes.
C
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The U.S. dollar will appreciate if inflation rises from 3 percent to 7 percent in the United States
Indicate whether the statement is true or false
According to the BEA, in the second quarter of 2012 personal consumption expenditures grew by 1.7 percent, gross private domestic investment grew by 3.0 percent,
government expenditure on goods and services decreased by -0.9 percent, imports grew by 2.9%, and exports grew by 6.0%. Given these data, it is most likely that A) GDP growth was positive in the 2nd quarter. B) GDP growth was negative in the 2nd quarter. C) the economy hit a business cycle peak. D) the economy hit a business cycle trough.
Many savers are willing to accept a lower interest rate on municipal bonds than on comparable instruments because
A) the after-tax yield on municipal bonds is greater. B) municipal bonds invariably have lower default risk. C) municipal bonds are more liquid than most other instruments. D) the yield on municipal bonds is considered inflation proof.
Probably the simplest approach to the problem of oligopolistic interdependence is to
a. conduct market experiments. b. assume that rivals will pursue a course most detrimental to the firm concerned. c. ignore the actions of rivals. d. increase the firm's advertising outlay considerably.