Which of the following statements is consistent with the views of Joseph Schumpeter?
A) An economy benefits from firms having market power because these firms are more likely to be able to commit funds for research and development.
B) Enforcement of antitrust laws is necessary to promote competition among firms.
C) A lack of competition discourages firms from developing new technologies.
D) Research and development by competitive firms is responsible for most technological changes.
A
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All of the following represent returns to savers EXCEPT:
A) dividends on stocks B) fees on loans C) interest on deposits D) coupon payments on bonds
Income elasticity of demand describes:
A. how much the quantity demanded changes in response to a change in consumers' incomes. B. which way the demand shifts in response to a change in price. C. how much the quantity demanded changes in response to a change in price. D. how quickly the market will change in response to a change in consumers' incomes.
The Taxpayer Relief Act of 1997 created the Hope Higher Education Scholarship program, which provides a maximum of $1,500 in tax credits for the first two years of college for families with adjusted gross incomes of less than $100,000 . Which factor(s) of production will change as a result of this program? Explain how this program is expected to affect the U.S. production possibilities curve
Consider the following:
(i) The accompanying diagram shows a net borrower. Complete the diagram to show how a net borrower is affected by a rise in the interest rate. Is the net borrower better off or worse off? Does the net amount borrowed increase or decrease? Explain, using substitution and income effects.
(ii) The accompanying diagram shows a net lender. Complete the diagram to show how a net lender is affected by a rise in the interest rate. Is the net lender better off or worse off? Does the net amount lent increase or decrease? Explain, using substitution and income effects.
