Granting a pharmaceutical company a patent for a new medicine will lead to (i) a product that is priced higher than it would be without the exclusive rights. (ii) incentives for pharmaceutical companies to invest in research and development. (iii) higher quantities of output than without the patent
a. (i) and (ii) only
b. (ii) and (iii) only
c. (i) and (iii) only
d. (i), (ii), and (iii)
a
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If two alternative economic models are offered, other things equal, we would
a. tend to pick the one with the lowest R2. b. select the model that is the most expensive to estimate. c. pick the model that was the most complex. d. select the model that gave the most accurate forecasts e. all of the above
According to an old saying, when too much money is chasing too few goods, we have a(n)
A. recessionary gap. B. inflationary gap. C. full employment. D. paradox of thrift.
Suppose that there is a negative externality associated with alcohol consumption in the United States (e.g., costs of publicly funded alcoholism treatment centers). What will happen to the social costs of this externality if the United States eliminates all tariffs on alcohol imports?
a. The social coasts will increase. b. They will not change. c. They will decrease. d. The social costs will increase but be offset by the private losses associated with increased imports as the tariffs are eliminated.
The total population of an economy is 175 million, the labor force is 125 million, and the number of unemployed is 8 million. The unemployment rate for this economy is:
A. 5.8 percent. B. 7.8 percent. C. 4.6 percent. D. 6.4 percent.