Institutions and laws, such as patent protection, that foster innovations lead to economic growth because they
A) give businesses loans to buy new machinery.
B) give confidence to consumers that the products they buy are safe.
C) allow the government control of the innovations.
D) give confidence to inventors that they will profit from their innovation.
D
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A small country is an international borrower and its domestic supply of loanable funds increases. Consequently, the equilibrium quantity of loanable funds used in the country ________ and the country's international borrowing ________
A) does not change; decreases B) does not change; does not change C) does not change; increases D) increases; does not change
If an excise tax is imposed on steak,
a. the government's tax revenue will decrease b. the government's tax revenue will increase c. the amount of steak produced and sold will increase d. the market price of steak will decrease e. the market price will rise but the market quantity will be unaffected
Macland is specializing and trading with Microland. Where will Macland be on its production possibility frontier?
a. It will be on the PPF. b. It will be inside the PPF. c. It will be outside of the PPF. d. It will be shifting the PPF out.
Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure.
According to Moe's PPC, moving from a 70 to an 80 in economics:
A. has a lower opportunity cost than moving from an 80 to a 90. B. is unattainable. C. has a higher opportunity cost than moving from an 80 to a 90. D. is inefficient.