A positive effect of opening up countries to international trade is that it results in the creation of supporting industries that provide resources to the industry in which trade takes place
a. True
b. False
Indicate whether the statement is true or false
True
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What are the trade-offs involved in shortening the length of a patent for pharmaceuticals?
What will be an ideal response?
Negative marginal utility means that
a. total utility is also negative b. marginal utility increases as additional units are consumed c. the price of the product increases as additional units are consumed d. the total revenue spent on the product decreases as more of the product is purchased e. total utility decreases as additional units are consumed
U.S. GDP and U.S. GNP are related as follows:
a. GNP = GDP - Income earned by foreigners in the U.S. + Income earned by U.S. citizens abroad. b. GNP = GDP + Income earned by foreigners in the U.S. - Income earned by U.S. citizens abroad. c. GNP = GDP + Value of exported goods - Value of imported goods. d. GNP = GDP - Value of exported goods + Value of imported goods.
The existence of inflation does which of the following?
A) reduces tax distortions B) reduces shoe-leather costs C) allows for the possibility of negative real interest rates D) reduces the costs associated with money illusion