An increase in government spending
a. increases the interest rate and so investment spending increases.
b. increases the interest rate and so investment spending decreases.
c. decreases the interest rate and so increases investment spending increases.
d. decreases the interest rate and so investment spending decreases.
b
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A patent is a government protection that gives
A) monopolies the right to be sole producers due to economies of scale. B) consumers the right to sue when products are unsafe. C) companies the right to produce any good they choose. D) inventors exclusive rights to their product for a time.
In a market system, self-interest motivates most people to
A) remain self-sufficient. B) avoid paying insurance premiums. C) provide products for other people. D) rely on government central planning.