The two most important actors of the economy are:
A. land and capital.
B. households and firms.
C. firms and capital.
D. exports and imports.
B. households and firms.
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Assume that the demand curve for a commodity is represented by the equation Q = 25 - 1.3P. Calculate the change in total spending for this commodity when price falls from $4.50 to $4.20
a. Total spending rises by $4.11. b. Total spending declines by $4.11. c. Total spending declines by $8.20. d. Total spending rises by $8.20.
Economic analysis suggests that patent laws that can often be used to limit the entry of potential competitors into an industry
a. redistribute income from consumers to business decision makers without affecting the allocation of resources. b. may be a source of business monopoly power, but they may also encourage innovation in the long run. c. encourage product development and the adoption of cost-reducing technologies in the short run but in the long run generally lead to business monopoly. d. help inventors at the expense of consumers in the long run.