The simplified Keynesian model
A) holds the price level constant.
B) holds real GDP constant.
C) assumes investment and saving are always equal.
D) assumes unemployment is unrelated to real GDP.
A
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The successor organization to GATT that handles trade disputes among its member nations is the
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.
One of the effects of patents is to
a. reduce incentives for innovation. b. give firms incentives to worry less about minimizing production costs. c. temporarily provide the patent owner with monopoly power. d. reduce the degree of monopoly power in the short run.
Which of the following is most likely to cause the productivity of labor to increase?
a. a higher rate of investment in human and nonhuman capital b. more flexible working hours and improved retirement plans c. an increase in the proportion of the workforce that belongs to a labor union d. higher money wages
Why do pharmaceutical firms benefit most from patent protection?
A. Because research and development of drugs require large expenditures that need to be recouped while the patent is still valid. B. Because pharmaceutical drugs need to be controlled by the government. C. Because pharmaceutical companies pay large taxes to the government. D. Because only physicians can legally prescribe pharmaceutical drugs.