Why does a patent stimulate research?
A) Patents give firms time to do research.
B) Patents give firms the opportunity to recover research costs and thus serve as a profit motive.
C) Without patents, firms would not research as much.
D) They don't.
B
You might also like to view...
Which of the following is true of the equation of exchange?
a. It states that the product of the price level and velocity of money is equal to real GDP. b. It states that aggregate demand in an economy is equal to total investment spending. c. It states that money supply times velocity of money equals real GDP d. It states that velocity of money is equal to the ratio of nominal GDP and money supply. e. It changes to the quantity theory of money if the price level is assumed to be constant.
The Save More Tomorrow (SMarT) program found all of the following except that:
A. participants quadrupled their savings in just a couple of years. B. if the default choice is to save a portion of income, people will save more. C. people were already saving at an optimal amount, so the program had no effect. D. people want to save more than they typically do.
The real rate of return on holding cash is equal to:
A. the real interest rate. B. zero minus the inflation rate. C. the expected inflation rate. D. the nominal interest rate.
A barrier to entry is
A) a term used to explain why monopolies always make economic profits. B) a restriction on the profits that a monopoly can make. C) the situation when the government produces a good instead of relying on private firms to produce the good. D) a restriction on starting a business.