Economists usually believe that:
A. innovation encourages competition.
B. competition encourages innovation.
C. innovation leads to market power and should be regulated.
D. market power leads to innovation.
Answer: B
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If the producer is at combination B as shown in Table 3-2, the opportunity cost of increasing corn production by 1 unit is
A. 29 units of cotton. B. 5 units of cotton. C. 12 units of cotton. D. 4 units of cotton. E. 1 unit of cotton.
Which of the following demand factors are under the control of management?
a. price of product b. advertising c. price of competitors' products d. customer service e. all except c
Utopia would be a debtor nation
a. if consumers in other countries bought goods and services from Utopia b. only if it had a deficit in its current account c. only if it had a deficit in its balance of goods and services d. if it had a deficit in its balance of trade e. if it had a deficit after adding together the balances in both its current account and its capital account
Which of the following events did not contribute to the high rate of bank failures in the 1980s and 1990s?
a. The collapse of the communist world, principally Russia; because of the collapse,they could not pay off their loans to U.S. banks b. Falling farm prices in the U.S. c. Bad loans to Mexico d. An unexpected slide in oil prices e. Falling agricultural land values