The reason that the government offers inventors exclusive rights to their product for a period of time is to
A) promote innovation. B) increase profits of certain companies.
C) maximize consumer utility. D) reduce market concentration.
A
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What best explains the difference between the two graphs in the Accounting Profits versus Economic Profits table?
a. Accounting profits are smaller than economic profits because they factor in explicit costs.
b. Economic profits are smaller than accounting profits because they factor in implicit costs.
c. Economic profits are smaller than accounting profits because they do not factor in implicit costs.
d. Accounting profits are smaller than economic profits because they do not factor in explicit costs.
What are the functions of money?
What will be an ideal response?
Bonds ________ and stocks ________
A) have a fixed number of interest payments; have a fixed number of dividend payments B) have a fixed number of interest payments; may pay dividends forever C) may pay interest payments forever; have a fixed number of dividend payments D) always pay interest payments forever; always pay dividends forever
If all firms pay an efficiency wage, then
A) there is no cost to shirking because the shirking worker can receive his high wage at another firm after being caught and fired. B) the macroeconomy would enjoy a prolonged period of near-zero unemployment. C) there is a cost to shirking because the efficiency wage is less than it would have been if only a few firms paid it. D) there is a cost to shirking because the shirking worker will spend a greater time unemployed after being caught and fired.