What is the purpose of the government granting monopoly power to a company by issuing a patent?
a. The government is opposed to competition and for a fee will prevent other suppliers from bring other new products to the market.
b. The company is provided an opportunity to try profit from their research investment without competition from other suppliers for the same product.
c. The company is being rewarded for making a better product than anyone else.
Ans: b. The company is provided an opportunity to try profit from their research investment without competition from other suppliers for the same product.
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If the United States imposed a quota on the amount of salmon imported from Chile, the result would be ________ salmon prices in the United States and ________ in the quantity of salmon demanded in the United States
A) higher; an increase B) higher; a decrease C) lower; an increase D) lower; a decrease E) higher; no change
The classical economists' conclusion that nominal income is determined by movements in the money supply rested on their belief that ________ could be treated as ________ in the short run
A) velocity; constant B) velocity; variable C) money; constant D) money; variable
According to a recent study, college students who graduate during an economic recession end up accepting jobs that, on average, pay ________ less than the jobs accepted by students who graduate during economic expansions, and will continue to earn
less for ________ after they graduate. A) 26%; 5 years B) 9%; 8 to 10 years C) 4%; 3 to 5 D) 17%; 12 to 15
When people buy assets simply because they believe the assets will appreciate and can be sold for a profit, it may cause:
A. a recession. B. unemployment. C. inflation. D. an asset-price bubble.