Entrepreneurs often undertake the innovations that are necessary to bring inventions to the marketplace. Accordingly, what empirical pattern should be expected in an international comparison?
A. Countries with higher rates of entrepreneurship have lower rates of economic growth.
B. Countries with higher rates of entrepreneurship have lower rates of immigration.
C. Countries that protect the property rights of entrepreneurs will have higher rates of economic growth.
D. Countries with higher rates of entrepreneurship have higher rates of poverty.
Answer: C
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In the monetarist model, an increase in both government spending and taxes would
a. lead to a large increase in interest rates. b. increase income dollar for dollar with the increase in government spending. c. have a much smaller impact on income than in the Keynesian model. d. all of the above.
Government mandating that every driver have a minimum amount of car insurance addresses the problem of:
A. moral hazard. B. illegal screening. C. adverse selection. D. statistical discrimination.
Which of the following is true?
a. Patents reduce a firm's incentive to develop new products. b. Patents are given for new works of art or literature. c. Patents give a permanent exclusive right to produce a new good. d. Patents give a temporary exclusive right to produce a new good. e. Patents guarantee economic profits.
Which of the following is true of a natural monopoly?
a. If regulated, the firm will have a higher level of output than an unregulated firm, whether the regulation is based on average cost, marginal cost, or normal profit. b. If regulated, the firm will have a lower level of output than an unregulated firm, whether the regulation is based on average cost, marginal cost, or normal profit. c. If regulated, the firm that is only allowed a normal profit will be allowed to charge a price in excess of its average cost. d. If regulated, the firm that is only allowed a normal profit will be allowed to produce more than a firm that must set a price equal to its marginal cost. e. If regulated, the firm that is only allowed a normal profit will be allowed to produce more than a firm that must set a price equal to its average cost.