Which of the following statements is consistent with the views of Joseph Schumpeter?
A) Research and development by competitive firms is responsible for most technological changes.
B) An economy benefits from firms having market power because these firms are more likely to be able to commit funds for research and development.
C) Enforcement of antitrust laws is necessary to promote competition among firms.
D) A lack of competition discourages firms from developing new technologies.
Answer: B
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If the expected path of 1-year interest rates over the next four years is 5 percent, 4 percent, 2 percent, and 1 percent, then the expectations theory predicts that today's interest rate on the four-year bond is
A) 1 percent. B) 2 percent. C) 3 percent. D) 4 percent.
The relevant market argument was used successfully by
A. Alcoa. B. DuPont. C. both Alcoa and DuPont. D. neither Alcoa nor DuPont.
Ceteris paribus means
A) "all variables are independent." B) "other things being constant." C) "some assumptions are unrealistic." D) "some theories are not rational."
Consumption is a flow measure.
Answer the following statement true (T) or false (F)