Why do patents stimulate research?
A) Patents give firms time to do research.
B) Patents give firms the opportunity to recover research costs and thus a profit motive.
C) Firms would research as much even without patents.
D) Patents don't stimulate research.
B
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Refer to Figure 21-2. Which of the following is consistent with the graph depicted above?
A) There is a shift from an income tax to a consumption tax. B) The government runs a budget surplus. C) New government regulations decrease the profitability of new investment. D) An expected expansion increases the profitability of new investment. Figure 21-3
Which of the following policy actions by the Fed would cause the money supply to decrease?
a. An open market purchase of government securities. b. A decrease in required reserve ratios. c. A decrease in the discount rate. d. An open-market sale of government securities.
The three components of personal consumption expenditures are
a. durable goods, nondurable goods, and services b. durable goods, food, and housing c. durable goods, nondurable goods, and housing d. durable goods, services, and food e. durable goods, services, and transportation
Exhibit 8-9 Investment expenditures
?
In Exhibit 8-9, which of the following could cause the shift from I1 to I2?
A. lower money holdings B. lower interest rates C. expectations of a future economic slow-down D. lower disposable income