Patents are a source of:
A) legal market power.
B) natural market power.
C) regulated market power.
D) firm-biased market power.
A
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The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. Based on this information, the Bubby Gum company should
A) fire Joanne because she creates a loss for the firm. B) increase its demand for labor. C) decrease Joanne's wage rate because she is paid too much. D) keep Joanne because she creates a profit for the firm. E) None of the above answers is correct because more information about Joanne's real wage is needed to decide what to do.
At the current price of a good, Al's consumer surplus equals 15, and Ben's consumer surplus equals 15. By charging a two-part tariff, a monopolist could increase his profit by
A) 8. B) 16. C) 15. D) 30.
"The Soviet economy is proof that, contrary to what many skeptics had earlier believed, a socialist command economy can function and even thrive.". This statement is from:
a. Hayek b. Mises c. Friedman d. Samuelson e. None of the above
One clear function for the government to play in an economy is to:
a. Promote research and development by providing tax breaks to domestic industries that will eventually be able to compete internationally. b. To provide needed goods and services that otherwise would not be provided effectively and/or efficiently by the private sector. c. Levy tariffs and other forms of protection to protect infant industries that will grow to international stature in the future. d. Run deficits when a nation is growing and surpluses when it is contracting.