Innovation typically increases when

A. government controls the resource base.
B. the legal system is weak.
C. high taxes are present.
D. market incentives and private property rights are encouraged.


Answer: D

Economics

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If a firm is a profit maximizer and faces positive marginal costs,

A) there is a natural limit to the size of the firm, where MR = 0. B) there is no natural limit to the size of the firm; it can be as large as it wants to be. C) there is a natural limit to the size of the firm, where MR > 0. D) there is no natural limit to the size of the firm, hence the need for government regulation.

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For a monopoly, marginal revenue for all units greater than 1:

A. is always less than the price. B. cannot be negative. C. is zero when total profits are maximized. D. is always greater than marginal cost.

Economics

If an increase in the price of good X causes the demand curve for product Y to shift to the right, then X and Y are most likely to be which of the following?

a. Shoes and laces b. Tennis balls and tennis rackets c. Turkey and chicken d. Knives and forks e. DVD players and DVDs

Economics

Which of the following would likely increase private saving?

a. Both expansion of IRA type accounts and a consumption tax. b. Expansion of IRA type accounts, but not a consumption tax. c. A consumption tax, but not expansion of IRA type accounts. d. Neither expansion of IRA type accounts nor a consumption tax.

Economics