If we are going to get the most value from our resources, entrepreneurs should choose the investment alternatives that
a. yield a profitable rate of return.
b. are most heavily subsidized by the government.
c. result in the production of the largest possible output regardless of value to consumers.
d. reduce the value of resources and retard wealth accumulation.
a. yield a profitable rate of return.
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Answer the following statement(s) true (T) or false (F)
1. A competitive industry is a viable alternative to a natural monopoly. 2. Patents have ambiguous welfare consequences because they both create monopoly power and promote inventive activity. 3. The competition among firms to acquire the rights to legal barriers to entry helps to reduce the welfare costs of monopoly. 4. Social gain is lowered when a monopoly begins to practice price discrimination. 5. When a simple profit-maximizing monopoly begins to practice second-degree price discrimination, both consumers and the monopoly will benefit.
When the nominal price of a good increases over time, must its real price also increase?
What will be an ideal response?
There are stereotypes (myths) about home-based businesses. Which of the following statements is a stereotype?
a. Most home-based businesses are run by women such as child care centers b. Most home-based businesses are run by men on computers c. It is hard to have a home-based business, too many conflicts d. Most home-based businesses are financially stable, rewarding
Americans who supported William Jennings Bryan and the "Free Silver" movement:
a. were in support of the gold standard. b. included the US Secretary of the Treasury. c. wanted to increase the U.S. price level. d. wanted free railroad transport of silver from western mines to the east.