Other things equal, patents:
A. decrease the expected rate of return on an R&D expenditure.
B. increase the expected rate of return on an R&D expenditure.
C. increase the interest-rate cost of funds used to finance an R&D expenditure.
D. decrease the interest-rate cost of funds used to finance an R&D expenditure.
Answer: B
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Productivity in the services industry may be underestimated because ____ may not be taken into account
a. the labor costs of providing a service b. the quantity of the service produced c. the capital costs of providing a service d. the prices charged by service industries e. the quality of the service provided
The present value of a property is the
a. loanable funds used to purchase the property b. profit earned by landlords c. value today of the stream of returns a property will generate in the future d. interest rate divided by the annual return of a property e. rent derived from owning the property