All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?
a. Output will rise by more than it did when the previous unit was added.
b. Output will rise but by less than it did when the previous unit was added.
c. Output will fall by more than it did when the previous unit was added.
d. Output will fall but by less then it did when the previous unit was added.
b
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Experience with patents in the pharmaceutical industry shows that when patents on drugs expire
A) prices remain high without patent protection because of a lack of competition. Firms that are not granted patents cannot compete with firms that are granted patents. B) other firms are free to produce chemically identical drugs. Competition reduces the profits that had been earned by the firms that received patents. C) most patients will continue to buy the drugs from the same firms because their doctors recommend they buy brand-name drugs. D) firms will find ways to obtain additional patent protection—often by making cosmetic changes in drugs that were patented—so that they can continue charging high prices.
The movement from socialism to capitalism undertaken by Poland in the early 1990s represents:
A. neither a policy change nor a regime change. B. a regime change. C. a policy change. D. both a policy change and a regime change.
The income effect of an inferior good is negative.
a. true b. false
Why do trade-offs occur? How are budget constraints related to trade-offs?
What will be an ideal response?