Which of the following is probably not a normal good?
A. lobster.
B. designer dresses.
C. macaroni and cheese.
D. expensive automobiles.
Answer: C
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Patents, which confer market power, are intended to:
A. encourage innovation by helping firms recoup the costs of research and development. B. maintain the dominance of U.S. firms. C. enable patent holders to charge lower prices for new and innovative products. D. protect consumers from imitations, or knock-offs.
A competitive firm's supply curve is identical to its marginal cost curve
Indicate whether the statement is true or false
A subsidy to buyers has been placed in the market in the graph shown. Why might the government enact such a policy?
A. As a way to encourage the consumption of the good
B. As a way to encourage consumers to substitute away from the good
C. As a way to discourage the production of the good
D. As a way to discourage the consumption of the good
If country A had a smaller underground economy than country B, and country A's citizens worked more hours per week than the citizens of country B, other things equal, then
a. GDP comparisons between the countries would overstate the economic welfare of country A compared to B. b. GDP comparisons between the countries would understate the economic welfare of country A compared to B. c. it is impossible to know which direction GDP comparisons between the countries would be biased as measures of the economic welfare of the two countries. d. it would not introduce any bias in using GDP to compare economic welfare between the countries.