The more money firms spend on R&D the faster the economy is expected to grow.
Answer the following statement true (T) or false (F)
True
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What is a subgame?
A) It is a simultaneous game embedded in a sequential game. B) It is one that starts at the final decision node of the tree. C) It is one that begins at any decision node of the tree except the first decision node. D) It is one that begins at any node of the tree, including the game itself.
A monopolistically competitive market is characterized by:
a. many small sellers selling a differentiated product. b. a single seller of a product that has few suitable substitutes. c. very strong barriers to entry. d. mutual interdependence in pricing decisions.
Which of the following is not a subcategory of consumption spending?
a. consumer services b. consumer investment c. consumer durable goods d. consumer nondurable goods
Suppose the government spends $10 billion subsidizing firms producing electricity with wind turbines because these firms are high cost producers. Will the subsidies lead to economic growth and higher income levels?
A) No, the turbines are an inefficient form of producing electricity and therefore the subsidies will increase the opportunity cost of supplying it. B) Yes, because more people will be employed by the firms producing electricity with wind turbines. C) Uncertain, higher income levels will be achieved if the employment of the firms producing electricity with the wind turbines expands; if not, incomes will fall. D) Yes, because the government will be able to finance the subsidies without reducing private sector output.