Patents, which confer market power, are intended to:
A. encourage innovation by helping firms recoup the costs of research and development.
B. maintain the dominance of U.S. firms.
C. enable patent holders to charge lower prices for new and innovative products.
D. protect consumers from imitations, or knock-offs.
Answer: A
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What would happen to the availability of credit if banks chose to either increase or decrease the percentage of deposits they hold as reserves?
What will be an ideal response?
What is one reason consumers might demand a discount for quantity purchases?
A) higher storage costs B) lower marginal cost C) lower marginal benefit D) price gouging
The Lorenz curve shows
A) the demand for jobs. B) the supply of jobs. C) the elasticity of jobs. D) the distribution of income.
Answer the following statement(s) true (T) or false (F)
1. The major reason education leads to higher wages is due to signaling. 2. Attending college can be seen as an individual’s attempt to raise their level of human capital. 3. Since mowing ones lawn is not done at their workplace, it is viewed as a use of their leisure time and thus (somewhat paradoxically) falls into the category of leisure. 4. One deficiency of labor-leisure indifference curve analysis is that because indifference curves are always tangent to the worker’s budget line, the model can not explain why some people choose not to work. 5. A firm’s marginal revenue product of labor equals the marginal product of labor times the cost per unit of the labor.