What happens when an innovation has positive externalities?
a. The cost of innovation will increase.
b. There will be more innovation than needed.
c. There will be less innovation than needed.
d. The cost of innovation will decrease.
c. There will be less innovation than needed.
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The concept of economic rent is associated with the British economist David Ricardo (1772-1823). Ricardo analyzed economic rent for land. Which of the following is FALSE with respect to determining land rent?
A) The supply curve for land is vertical (perfectly inelastic). B) Rent is payment for a resource above its opportunity cost. C) Payment for a resource below its opportunity cost is rent. D) Ricardo assumed the quantity of land in a country is fixed.
Restrictions on imports
A) usually have no permanent effects on an economy. B) is the best way to increase exports. C) protect United States jobs. D) eventually reduce exports.
An unexpected increase in aggregate demand
A. causes the price level to fall. B. the unemployment rate to rise. C. causes the price level to rise. D. both the unemployment rate and the price level to rise.
Refer to the information provided in Table 19.4 below to answer the question(s) that follow.Table 19.4Total IncomeTotal Taxes$10,000 $1,000 20,000 2,400 30,000 4,500 40,000 8,000Related to the Economics in Practice on page 393: Refer to Table 19.4. At an income level of $40,000, the average tax rate is
A. 2%. B. 5%. C. 15%. D. 20%.