The effect throughout the entire economy of one individual's increase in spending will be
a. less than the individual's spending.
b. equal to the individual's spending.
c. greater than the individual's spending.
d. offset by another individual's saving.
c
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The slope of the production possibility frontier shows
a. how inputs must be changed to keep them fully employed. b. the technically efficient combinations of the two goods. c. how demanders are willing to trade one good for another. d. the opportunity cost of one good in terms of the other.
The conjecture that R&D expenditures as a percentage of firms' sales first rise, reach a peak, and then fall as industry concentration rises is known as the:
A. inverted-U theory of R&D. B. average product of R&D theory. C. bell-shaped-curve theory of product innovation. D. theory of increasing and diminishing returns.