Economists generally agree that price controls in the U.S. would
A. increase prices to consumers.
B. increase the motivation to invent new drugs and diminish profits to drug companies.
C. increase the motivation to invent new drugs.
D. diminish profits to drug companies.
Answer: D
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Game theory is the study of which of the following?
a. The prisoner's dilemma b. The behavior of people engaged in recreational games c. The mutual interdependence of firms in oligopolistic industries d. The downward sloping demand curve faced by firms in an oligopoly e. The interaction between marginal and average revenue
Last year your job at the university cafeteria paid you $9 an hour and the price of a music download was $1.00 . This year your cafeteria job pays $9.90 per hour and download costs $1.10 . You are clearly
a. worse off because of inflation. b. worse off because the download is now relatively more expensive. c. better off because your wage rate went up. d. better off because the download now costs less work.