A benefit to society of the patent and copyright laws is that those laws
a. help to keep prices down.
b. help to prevent a single firm from acquiring ownership of a key resource.
c. encourage creative activity.
d. discourage the production of inefficient products.
c
You might also like to view...
Which of the following is true?
A) The Cobb-Douglas production function exhibits increasing returns to scale. B) The sum of the coefficients of capital and total efficiency units of labor in a Cobb-Douglas production function is less than 1. C) The Cobb-Douglas production function exhibits constant returns to scale. D) The sum of the coefficients of capital and efficiency units of labor in a Cobb-Douglas production function is greater than 1.
If the government raises income taxes, then the equilibrium amount of employment ________ and potential GDP ________
A) increases; decreases B) does not change; does not change C) increases; increases D) decreases; increases E) decreases; decreases
According to your textbook, expansionary monetary policy
A) encourages entrepreneurs to invest in projects that only appear profitable. B) creates a temporary "boom," or economic expansion. C) will ultimately be followed by a "bust," as entrepreneurs learn of their forecasting errors. D) tends to generate all of the above.
In the case of negative externalities in production, the firm's internal costs:
a. exceed the external costs. b. are less than the external costs. c. equal the external costs. d. understate the true cost of producing the product. e. overstate the true cost of producing the product.