The supply curve for innovative activities
A. slopes upward because as the price of innovation rises, people who would otherwise become scientists begin to go into other occupations like law or business.
B. slopes downward because as the price of innovation rises, people who would otherwise become scientists begin to go into other occupations like law or business.
C. slopes downward because as the price of innovative activities rises, people will want to consume fewer innovative services.
D. slopes upward because as the price of innovation rises, more people and capital will be attracted into innovative activities.
Answer: D
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Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result, the equilibrium price ________, and the equilibrium quantity ________
A) rises; increases B) falls; increases C) falls; decreases D) falls; does not change E) rises; does not change
Table 19.2Quantity ConsumedTotal UtilityMarginal Utility115152 9330 4 3In Table 19.2, the total utility when four units are consumed is
A. 30. B. 33. C. 6. D. 3.
Interest-rate risk can best be characterized as the risk that
A) you could have earned a higher interest rate if you waited to purchase a bond. B) fluctuations in the price of a financial asset in response to changes in market interest rates. C) you could have gotten a lower interest rate if you waited to lock in a mortgage. D) short-term interest rates may exceed long-term interest rates.
The value of a real option varies with all of the following, EXCEPT:
a. the range of outcomes. b. the rate of interest. c. the rate of unemployment. d. the delay in resolving uncertainty.