Suppose that a firm's legal staff concludes that a new production process that the firm is developing is patentable. Graphically, this new information would shift the firm's expected-rate- of-return curve on R&D to the:
A. right and reduce its optimal amount of R&D.
B. right and increase its optimal amount of R&D.
C. left and increase its optimal amount of R&D.
D. left and reduce its optimal amount of R&D.
Answer: B
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Which of the following statements is true about M2?
A) Its total value is smaller than that of M1. B) Apart from those assets also included in M1, it includes no assets that offer check-writing features. C) Its total value is about five times as large as M1. D) It includes large-denomination time deposits.
A key distinction between market-based economic systems and other types is
A) the use of democratic political systems to determine the goods produced, methods of production, and allocations of goods B) the use of corporations as a key mechanism for production of goods C). the use of public rather than private decisions to determine the goods produced, methods of production, and allocations of goods D) the reliance on voluntary decisions and exchanges versus forced exchanges