Governments can play a role in supporting the production of new ideas by:
A. protecting intellectual property.
B. enforcing antimonopoly laws.
C. directing the immediate exchange of all scientific ideas.
D. taxing industries that become too competitive.
Ans: A. protecting intellectual property.
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Suppose that Germany, France, Estonia, and India all have the same production possibilities, illustrated in the figure above. Based on the production points in the figure, Germany is most likely to expand its PPF to
A) PPF3 or PPF2. B) PPF3. C) PPF1. D) PPF1. or PPF2. E) PPF2.
How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection, in what country would you expect to have a longer life expectancy, the United States or India? Explain
What will be an ideal response?
Two consequences of asymmetric information are adverse selection and moral hazard. An important distinction between the two is
A) adverse selection exists prior to the completion of a transaction while moral hazard occurs after the transaction is completed. B) moral hazard exists prior to the completion of a transaction while adverse selection occurs after the transaction is completed. C) adverse selection leads to an inefficient quantity while moral hazard leads to an efficient quantity. D) moral hazard leads to an inefficient quantity while adverse selection leads to an efficient quantity.
Farmers lobbying the government for agricultural price supports are engaging in rent-seeking behavior.
Answer the following statement true (T) or false (F)