In the diagram, at $10 million of R&D expenditure, the:
A. expected rate of return exceeds the interest-rate cost of funds.
B. firm is spending an optimal amount on R&D.
C. interest-rate cost of funds exceeds the expected rate of return.
D. marginal benefit of R&D is less than the marginal cost of R&D.
A. expected rate of return exceeds the interest-rate cost of funds.
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A strength of the market economy is that:
a. it results in an equal distribution of wealth. b. resources are used efficiently. c. planners rather than consumers determine answers to the basic economic questions. d. information for production and distribution decisions passes directly from the government to buyers.
Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000 . Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500
a. Upland has higher productivity and higher real GDP per person than Lowland. b. Upland has higher productivity but lower real GDP per person than Lowland. c. Upland has lower productivity but higher real GDP per person than Lowland. d. Upland has lower productivity and lower real GDP per person than Lowland.
A period of decline in total output, income, employment, and trade, lasting six months or longer, is defined as a:
A. trough. B. secular trend. C. business cycle. D. recession.
Figure 18.2Refer to Figure 18.2. After trade and specialization begin, the maximum amount of spears that Macadamia can consume is:
A. 40. B. 100. C. 120. D. 160.