What would happen if the government chooses to increase the number of years that a firm can enjoy patent protection from 20 years to 25 years?
What will be an ideal response?
Because the time that a firm can enjoy monopoly rights increases, the firm will receive a larger profit with longer patent protection. This will entice more firms to invest in research and development, in the hopes of creating more patents and more profits. However, while this policy increases the creation of higher cost new products or technology, it will reduce the market efficiency for those products that would have been produced under the old 20 year rule. Those markets will display lower production and higher prices for a longer time.
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From 2005-2008, the unemployment rate in the United States was significantly different from the rates in France, Germany, and Italy
This is often attributed to the idea that the rate of ________ unemployment in these European countries was ________ than it was in the United States. A) frictional; lower B) structural; higher C) cyclical; lower D) seasonal; higher
Since half of the FICA tax is paid by firms and the other half is paid by workers, the burden of the tax must fall equally on firms and workers
a. True b. False Indicate whether the statement is true or false
A profit-maximizing monopsonist will hire the quantity of labor where
A. MRP equals zero. B. MRP equals MFC. C. MRP equals the wage rate. D. Labor supply equals labor demand.
If policymakers deem inflation as being too high, then the policy response should be monetary ________, which shifts aggregate demand______.
A. easing; a left B. easing; right C. tightening; left D. tightening; right