Suppose Ford develops a technology enabling its full-size cars to get 150 miles per gallon. If it applies for a patent on that technology and is denied, Ford can expect to
a. still have a monopoly on that technology because Ford has monopoly power in the industry
b. sell that technology to a competitor who will reapply for the patent
c. be reimbursed for its investment in research by the government because it was the government that denied the patent in the first place
d. earn lower profit than they would with the patent
e. sell fewer cars in the short run, but more in the long run than its competition
D
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Refer to Figure 9.1. Assume the economy is initially at point A
Following the initial change in short-run equilibrium resulting from a recession caused by an increase in oil prices, the end of the recession is best represented by which long-run equilibrium combination of price level and real GDP? A) P1; Y1 B) P3; Y3 C) P1; Y3 D) P3; Y1
In an open economy, an increase in the government's budget deficit will ________ the domestic real interest rate and ________ the level of capital investment in the country, holding other factors constant.
A. decrease; decrease B. increase; decrease C. increase; increase D. decrease; increase
The balance of payments deficit is the amount by which the quantity supplied of a country’s currency (per year) exceeds the quantity demanded..
Answer the following statement true (T) or false (F)
Suppose the central bank announces that it will pursue a monetary expansion in the current period and a monetary expansion in the future. Explain how the credibility of the central bank might influence the effectiveness of this monetary policy action and announcement of a future monetary policy action
What will be an ideal response?