The corporate decision on type and level of R&D activity is difficult because:
A. the interest-rate cost of funds is difficult to estimate.
B. much of corporate R&D is based on the pursuit of science, not on the profit motive.
C. expected returns lie in the future and are highly uncertain.
D. total returns and marginal returns greatly diverge.
Answer: C
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When calculating the CPI, the Bureau of Labor Statistics
A) makes certain to weight the goods and services equally so that no one product is over-weighted. B) weights the price of all goods and services produced in a year within a country's borders. C) sums the prices of the goods and services in the average urban household consumption basket. D) weights the price of goods and services in the basket relative to the importance of the average urban household budget. E) multiplies by 100 the average price of goods and services in the average urban consumer's basket.
Nonunion labor is a substitute for union labor, so when the minimum wage ________, the demand for union labor ________
A) rises; decreases B) decreases; increases C) decreases; decreases D) rises; increases E) rises; remains the same
Which of the following pieces of legislation represents a liberalization of federal land policy?
a. The Homestead Act of 1862 b. The Desert Land Act of 1877 c. The Timber and Stone Act of 1878 d. All of the above are correct. e. Only a and c are correct.
One objection to supply-side tax cuts is that demand-side changes
a. are smaller than supply-side changes. b. and supply-side changes are about equal. c. are more unpredictable than supply-side changes. d. are larger than supply-side changes.