When governments grant patents:
A. producers earn profits that are substantially higher than would occur in a competitive market.
B. consumers pay a higher price than they would in a competitive market.
C. consumers are likely to pay lower prices than they would in a competitive market.
D. both producers earn profits that are substantially higher than would occur in a competitive market and consumers pay a higher price than they would in a competitive market are correct.
Answer: D
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Profits can be thought of as
a. the return to enterprise. b. the reward for taking a risk and winning. c. what is left over after all wages, rent, and interest have been paid. d. All of these.
If a nation's Lorenz curve lies on the 45 degree line of income equality, then
A) more of the nation's income is received by the lowest 20 percent of families than by the highest 20 percent. B) income is unequally distributed. C) more of the nation's income is received by the highest 20 percent of families than by the lowest percent. D) the income received by each 20 percent of families is 20 percent of the total income.
Which of the following counties are largely dependent on trade with the United States?
a. China and Japan b. U.K. and Germany c. Canada and Mexico d. France and Belgium e. Canada and U.K
Under a system of fixed exchange rates, what will happen if the price of a currency is set above market equilibrium? How can this be remedied?