Economists who contend that oligopolists have a strong incentive to engage in R&D say that:
A. the undistributed profits of oligopolists give them a source of readily available, relatively
low-cost funds for financing R&D.
B. entry barriers enable oligopolists to sustain the profit it gains from innovation.
C. the large size of oligopolists' R&D departments allows them to use very specialized,
expensive R&D equipment and employ teams of specialized researchers.
D. all of these are true.
Answer: D
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Large projects that involve purchasing land from many landowners may not succeed due to the numerous expenses of negotiating so many different deals. These expenses, such as attorney's fees and bank fees, are examples of
A) transactions costs. B) eminent domain. C) the holdout problem. D) negative externalities.
The OLS residuals in the multiple regression model
A) cannot be calculated because there is more than one explanatory variable. B) can be calculated by subtracting the fitted values from the actual values. C) are zero because the predicted values are another name for forecasted values. D) are typically the same as the population regression function errors.
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Define the following four references and name a country that you argue would fall into each category
(a) First World (b) Second World (c) Third World (d) Fourth World