Which of the following firms is most likely to spend on innovation?
A) A perfectly competitive firm
B) A monopoly with absolutely no competition
C) A firm that is the only controller of a key resource necessary for production
D) A firm that enjoys some monopolistic power, but faces strong competition from its rivals
D
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Which of the following statements is true?
A) The more liquid the bond, the lower the yield. B) Tax-free bonds normally have a higher interest rate than other types of bonds. C) The price of a bond increases as it becomes more risky. D) The yield curve illustrates the relative default risks of alternative types of bonds.
Assuming that the median voter model accurately explains how public sector decision are made, resources will be allocated efficiently if _____
a. preferences are single-peaked and individuals prefer outcomes closer to their preferred outcome rather than outcomes farther away b. rational ignorance and cyclical majorities are not present c. resources were already allocated efficiently in the private sector d. the median voter's demand is the same fraction of total demand as his tax share is of total taxes