Governments create monopolies through patents and copyrights in order to do which of the following?
a. Limit the number of firms in the industry
b. Control what is produced and consumed
c. Encourage innovation of new products and technology
d. Encourage a firm to increase in size
c. Encourage innovation of new products and technology
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Which of the following statements is an explanation for the law of increasing opportunity costs?
A. In any economy, the state of technology is changing and resources are variable. B. Many economic resources are better at producing one product rather than another. C. The economy is employing all of its available resources. D. The economy is achieving productive efficiency by producing goods at the least cost.
A private subsidy has what effect on the amount of a good or service produced? Is a subsidy an appropriate policy to offset the inefficiency from an external cost or an external benefit?
What will be an ideal response?
If you exhibit endowment effect, then you
A) decide rationally when making decisions about selling but not when making decisions about buying. B) have a strong attachment to things you already own. C) buy something you cannot afford. D) decide rationally when making decisions about buying but not when making decisions about selling.
The amount of payment necessary to attract a given productive resource away from its best alternative use is the
a. resource cost. b. opportunity cost. c. overhead cost. d. variable cost.