Since patents lead to lower quantities and higher prices for new products, society is necessarily worse off when patents are awarded.
Answer the following statement true (T) or false (F)
False
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________ refers to a decrease in the willingness of banks to lend, while an impairment of the ability of nonfinancial firms to borrow is a consequence of ________
A) Adverse selection; moral hazard B) Deleveraging; debt deflation C) Fire sales; a bank panic D) The shadow banking system; agency theory
Because of record-keeping and monetary costs, a general grant is always preferable to a categorical grant
a. True b. False
A deadweight loss is a consequence of a tax on a good because the tax
a. induces the government to increase its expenditures. b. induces buyers to consume less, and sellers to produce less. c. increases the equilibrium price in the market. d. imposes a loss on buyers that is greater than the loss to sellers.
Is the firm in graph in the short run or the long run? How do you know?
