Firms are likely to underinvest in research and development, which slows knowledge capital, slowing economic growth, because
A. knowledge capital is both rival and excludable, and no other firms can freely access the research and development of one particular firm
B. they can save that money and invest in capital accumulation, which is much better for growth
C. research and development are expensive and at the firm level, it is subject to increasing returns
D. knowledge capital is both nonrival and nonexcludable; other firms can freely access the research and development of one particular firm
Answer: D. knowledge capital is both nonrival and nonexcludable; other firms can freely access the research and development of one particular firm
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Refer to the figure above. What is the surplus enjoyed by the firm when it is the sole supplier of the medicine?
A) $30 B) $60 C) $90 D) $180
Investment is a(n) ____ and capital is a(n) ____ variable
a. physical, financial b. stock, flow c. asset, liability d. flow, stock
If marginal utility of apples is diminishing and is a positive amount, consuming one more apple will cause
A) a consumer to go beyond her optimal consumption of apples. B) total utility to decrease. C) a consumer to get no satisfaction from consuming apples. D) a consumer's total utility to increase.
During the three decades immediately following World War II,
a. conservative forces successfully blocked any expansion of New Deal-type programs. b. the prevailing liberal ideology led to the passage of legislation that increased Social Security benefits, created Medicare, and increased the minimum wage. c. disillusionment with government led to deregulation of airlines and other industries. d. most policy makers and the general public rejected Keynesian policies.