Ordinarily, governments attempt to promote competition in markets. Why do governments use patents to block entry into some markets when this prohibits competition?
A) Politicians sometimes succumb to pressure from lobbyists to grant favors to businesses for political reasons.
B) Patents are an important source of government revenue.
C) Patents are justified because they are an important means for creating network externalities.
D) Patents encourage firms to spend money on research necessary to create new products.
D
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The cyclically adjusted budget is calculated at potential GDP
Indicate whether the statement is true or false
Deadweight loss exists when a market is operated by a monopoly because the monopolist produces at an output level that is ____ the socially optimal level
Fill in the blank(s) with the appropriate word(s).
A consumer expenditure survey reports the following information on consumer protein spending: 20162017 PriceQuantityPriceQuantityFish$55$77Chicken$310$412Beef$67$510Using 2016 as the base year, by how much does a "cost of protein" index increase between 2016 and 2017?
A. 14.3 percent B. 13.4 percent C. 5.2 percent D. 8.6 percent
Using taxes to finance a war, rather than deficits,
A) leads to a greater future capital stock. B) is generally not proposed by economists. C) shares less of the burden of the war with future generations. D) all of the above E) none of the above