On the graph showing the impact of patent protection on equilibrium price and quantity, when a patent on a drug expires, consumers gain a consumer surplus of approximately area ______.
a. a
b. b
c. bc
d. abc
c. bc
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Your U.S.-based company is doing business internationally. One way to mitigate exchange rate risk is to
A) require payment in US$. B) use a forward contract. C) use a futures contract. D) All of the above.
An economic model will produce poor predictions if it includes unrealistic assumptions
a. True b. False
If the consumer price index (CPI) in Year X was 300 and the CPI in Year Y was 325, the rate of inflation for Year Y was:
a. 325 percent. b. 25 percent. c. 5 percent. d. 8 percent.
Special interest group Q receives a 1/10,000th slice of the economic pie. Its net benefit from either an economic growth policy or a transfer policy is $50,000. In order for group Q to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by _________________. This type of analysis is used to show that special interest
groups tend press government for ______________ instead of ________________. A) $50,000,000; economic growth; transfers B) $500,000; transfers; economic growth C) $500,000,000; transfers; economic growth D) $5,000,000; transfers; economic growth E) none of the above