Which of the following lowers the incentive for a firm to invest in research and development?
a. The potential for resulting innovations to be copied
b. The inability of a firm to balance private and social benefits
c. The high cost of investing in human capital
d. The lack of legal protection for innovations and inventions
a. The potential for resulting innovations to be copied
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Suppose that a city law requires taxi drivers to wear tuxedos. The drivers must pay $10 per week for the tuxedos. Taxicab companies pay their drivers $210 per week. After paying for the tuxedos, taxi drivers earn $200 per week.
(i) If the law were revised so that taxicab companies, not the drivers, must pay for the tuxedos, what would happen to the taxi drivers' earnings? (ii) If the law were repealed, what would happen to the taxi drivers' earnings? Be as specific as possible.
One way for the federal government to increase the amount of spending in the domestic economy would be to decrease personal and business taxes
Indicate whether the statement is true or false
When aggregate expenditure is less than? GDP, which of the following is? true?
A) There was an unplanned increase in inventories.
B) Households bought more new homes than they anticipated.
C) Firms spent more on capital goods than they anticipated.
D) All of the above must be true when aggregate expenditure is less than GDP.
GDP is a measure of an economy's:
A. domestic price level. B. domestic productivity. C. level of unemployment. D. total output.